WPI inflation eases to 12.96% in January-22

14 Feb 2022 , 01:00 PM

The WPI inflation data eases at 12.96% in January 2022 even though the inflation in food spiked to 10.33% in January 2022 from 9.56% in December 2021.

The annual rate of inflation is 12.96% (Provisional) for the month of January 2022 (over January 2021) as compared to 2.51% in January 2021. The high rate of inflation in January 2022 is primarily due to the 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.

The month over month change in the WPI index for the month of January 2022 stood at 0.35 % as compared to December 2021.

The Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group has decreased from 169.0 in December 2021 to 166.3 in January 2022. The rate of inflation based on the WPI Food Index increased from 9.24% in December 2021 to 9.55% in January 2022.

Primary Articles (Weight 22.62%): The index for this major group declined by (-1.67%) to 165.0 (provisional) in January 2022 from 167.8 (provisional) for December 2021. Prices of Minerals (11.08%) and Non-food Articles (0.37%) increased in January 2022 as compared to December 2021. Prices of Food Articles (-2.61%) and Crude Petroleum & Natural Gas (-5.11%) declined in January 2022 as compared to December 2021.

Fuel & Power (Weight 13.15%): The index for this major group increased by (3.90%) to 133.2 (provisional) in January 2022 from 128.2 (provisional) for the month of December 2021. Prices of Electricity (15.94%) and Mineral Oils (0.83%) increased in January 2022 as compared to December 2021. Prices of coal remain unchanged.

Manufactured Products (Weight 64.23%): The index for this major group increased by (0.51%) to 137.1 (provisional) in January 2022 from 136.4 (provisional) for the month of December 2021. Out of the 22 NIC two-digit groups for manufactured products, 18 groups have witnessed an increase in prices while 3 groups have witnessed a decrease in prices in January 2022 as compared to December 2021. 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. Some of the groups that have witnessed a decrease in prices are the manufacture of wood and of products of wood and cork; tobacco products; and pharmaceuticals, medicinal chemical and botanical products. While the Manufacture of beverages remain unchanged in January 2022 as compared to December 2021.