Inflation declines marginally to 12.96% in January

New Delhi, February 14

The annual rate of inflation is 12.96 per cent (provisional) for the month of January, a decline from the 13.56 per cent recorded in the previous month.

“The high rate of inflation in January is primarily due to rise in prices of mineral oils, crude petroleum & natural gas, basic metals, chemicals, and chemical products, food articles etc as compared to the corresponding month of the previous year,” said an official news release.

Asked to comment, the Reserve Bank of India Governor Shaktikanta Das said the “momentum of inflation is on a downward slope” and said the Central Bank will strike a delicate balance between the need to contain price rise and ensure economic growth.

“Our inflation projections are quite robust and we stand by it. If there is something of course totally unforeseen and you know, which nobody can expect, that is different and we have said that it is contingent on you knowing the risk the downside or the upside risk to these projections is the crude prices,’’ he added.

The index for the Primary Articles group declined by (-1.67 per cent) to 165 in January from 167.8 (provisional) for the month of December. While prices of minerals and non-food articles increased in January, the prices of food articles (-2.61 per cent) and crude petroleum & natural gas (-5.11 per cent) declined as compared to December, 2021.

The index for the Fuel & Power’ group increased by 3.90 per cent to 133.2 (provisional) in January as compared to 128.2 (provisional) in December. Prices of Electricity (15.94 per cent) and Mineral Oils (0.83 per cent) increased while prices of coal remained unchanged.

The index for manufactured products increased by 0.51 per cent to 137.1 (provisional) in January as compared to 136.4 (provisional) for December.

Out of the 22 NIC two-digit groups for manufactured products, 18 groups witnessed increase in prices while three groups witnessed decrease in prices.

The increase in prices is mainly contributed by basic metals; motor vehicles, trailers and semi-trailers; machinery and equipment; textiles; and chemicals and chemical products. Prices decreased for manufacture of wood and of products of wood and cork; tobacco products; and pharmaceuticals, medicinal chemical and botanical products.

The WPI food index decreased from 169.0 in December to 166.3 in January. The rate of inflation based on WPI Food Index increased marginally from 9.24 per cent in December to 9.55 per cent in January.