Economy

Jan inflation eases to 8.23% on cheaper pulses, sugar

Our Bureau New Delhi | Updated on March 12, 2018

Finance Minister, Mr Pranab Mukherjee   -  Business Line

Inflation, based on the annual Wholesale Price Index (WPI), eased in January to 8.23 per cent from the 8.43 per cent reported in December, according to data released by the Government on Monday. However, the headline inflation estimate for November was raised to 8.08 per cent from the 7.48 per cent reported earlier.

7% by fiscal end

The latest data showed the annual food inflation rate in January eased to 15.65 per cent from a year earlier, compared with 20.19 per cent in the same month last year. The Finance Minister, Mr Pranab Mukherjee, said he hopes inflation will ease to 7 per cent by the end of the fiscal year in late March, but rising global commodity prices pose a risk to the target.

“I am hoping that it (inflation) would be roughly around 7 per cent (by March end)… But I cannot firmly commit it,” Mr Mukherjee told reporters here.

“Don't go by the weekly fluctuation or monthly fluctuations. This was expected. It is nothing unusual,” he said.

The fall in the inflation estimate for January, according to the latest data, has been mainly on account of declining sugar (down 15 per cent on a year-on-year basis), pulses (13 per cent), wheat (5 per cent) and potato (over 1 per cent). However, vegetable and fruits continued to remain high. On an annual basis, vegetables were up 65 per cent, and onions nearly doubled.

Also, fruits gained 15 per cent and egg, meat and fish 15 per cent. Overall, inflation in primary articles was up 17.28 per cent, with food articles rising 15.65 per cent.

Fibres dearer

In the non-food articles category, fibre prices rose 48 per cent on an annual basis. Inflation in the fuels group shot up by over 11 per cent, with petrol rising 27 per cent on year-on-year basis.

Published on February 14, 2011

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