Governor of the Reserve Bank of India (RBI) Shaktikanta Das stated that the momentum of inflation in India has been declining since last October. He went on to say that this is due to statistical factors such as the base effect, which has resulted in greater inflation, particularly in the third quarter.
"The same base effect will play in different ways in the following months," Das continued. Today's inflation reading is predicted to be about 6%. That shouldn't come as a surprise or raise concern because we've factored it in."
Meanwhile, according to the Ministry of Commerce and Industry, wholesale price-based inflation (WPI) fell for the third time in January to 12.96 percent. WPI had previously dipped to 14.87 percent in November and 13.56 percent in December.
Despite a drop in the WPI, January had a high rate of inflation due to increases in the cost of basic metals, chemicals and chemical products, crude petroleum and natural gas, food items, mineral oils, and other items compared to the same month the previous year.
In January, inflation in manufactured goods increased by 0.51 percent to 137.1 percent, with electricity prices rising by 15.94 percent and mineral oil prices rising by 0.83 percent. Coal prices, on the other hand, remained stable.