The Wholesale inflation raised to a high of 5.25 per cent in January due to rise in crude oil prices, petrol and high speed diesel prices.
The Wholesale inflation of India flew to a 30-month high of 5.25 per cent in January due to rising prices of petrol and diesel and in the Last week Reserve Bank Of India had decided further not to change interest rates on a fear of it may impact on the rise of inflation on the coming days.
In the months of December and November, the annual rate was 3.39 per cent and 3.38 per cent, but now it was the highest case of all the previous one from since July 2014.
Due to the Continuous increase in oil prices, diesel and high speed petrol prices have impacted on the annual rate of WPI and it may also impact on exchange rate and import bills and have to be taken care of by the representatives said, Assocham President Sandeep Jajodia.
It also expected that based on the trajectory of exchange rates, commodity prices and food prices there is a chance to rise the inflation furthermore in February. Accordingly, the section which is between WPI and CPI inflation of jan 2017, is likely to preserve until this quarter said, Aditi Nayar who is the principal economist at the rating agency ICRA.
According to the records, the inflation food of basket witnessed a reduction in the second month with the inflation rate at (-)0.56 per cent in January as in contradiction of (-)0.70 per cent in December. In case of eggs, meat and fish the rate of price where annual increased which was of about 3.59 per cent during January.
Inflation in manufactured items at 3.99 per cent compared with 3.67 per cent in December.
The WPI in case of vegetables is at the rate of (-)32.32 per cent in January, which shows a deflationary for the fifth following month, which resulted in significant fall in the case of onions at the annual rate of (-)28.86 per cent.
The inflation of pulses toned-down, from 18.12 per cent to 6.21 per cent in December.
It also estimated that the inflation would be in the range of 4-4.5 per cent in the first half and 4.5-5 per cent in the second half of 2017-2018.