Inflation Reduced To 0.06% In Jan 2025

India’s wholesale price inflation declined to 2.31% in January from 2.37% in December, according to data from the Ministry of Commerce and Industry. This figure was lower than the estimated 2.5%. The fall in wholesale inflation was mainly due to a drop in primary article prices, particularly food. However, prices of manufactured goods increased, while fuel and power prices continued to slow down.

Among food items, vegetables—especially potatoes—saw a price drop, contributing to the overall decline. According to ICRA, WPI-food inflation may decrease further to below 7% in February, down from 7.5% in January. However, global commodity prices have been rising due to concerns over US trade policies, which could increase costs in the non-food segment.

The depreciation of the Indian Rupee, averaging 87.19 per USD in February compared to 86.25 in January, is likely to raise import costs. As a result, ICRA predicts WPI inflation to rise slightly to 2.4-2.6% in February.