The government reported on Monday that wholesale price-based inflation fell for the second month in a row in January, at 12.96 percent, despite rising food costs.
Since April 2021, WPI inflation has remained in double digits for the tenth month in a row. In December 2021, inflation was 13.56 percent, whereas it was 2.51 percent in January 2021.
Food inflation, on the other hand, jumped to 10.33 percent in January 2022, up from 9.56 percent in December 2021. The rate of increase in vegetable prices increased to 38.45 percent, up from 31.56 percent the previous month.
Pulses, cereals, and paddy all saw price increases month over month, while egg, meat, and fish inflation was 9.85 percent, and potato and onion inflation was (-)14.45 and (-)15.98 percent, respectively.
"The high rate of inflation in January 2022 is primarily due to increases in the prices of mineral oils, crude petroleum and natural gas, basic metals, chemicals and chemical products, food articles, and other items as compared to the same month the previous year," according to a statement from the Commerce and Industry Ministry.
Last week, the Reserve Bank retained its benchmark repo rate, which it uses to lend short-term money to banks, at 4 percent for the tenth time in a row to promote growth while also managing inflationary concerns.
Cryptocurrencies Watch: Bitcoin, Ethereum fall, Tether rises marginally
Key takeaways from RBI's MPC meet include repo rate, liquidity, inflation, GDP, and more