The Wholesale Price Index-based (WPI) inflation rose to 3.10 percent in January from 2.59 percent in December 2019. The WPI inflation was also much higher than 2.76 percent reported for January 2019.

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Rajni Thakur, economist at RBL Bank, said: “The number is on the higher side than expected both on consensus and our house expectations as well.”

Talking about food inflation, she said, “Though IIP numbers have come down and RBI capacity utilization survey saw some reduction in capacity utilization as well, but if in any way we are getting some sign of pricing power in manufacturing then its positive or green shoot that we were waiting for.”

On a sequential basis, the expenses on manufactured products category, which constitute over 64 percent of the WPI's total weightage, increased to 0.34 percent from (-)0.25 percent.

Furthermore, the prices of fuel and power sub-category increased at a faster rate of 3.42 percent from (-)1.46 percent.

The prices of primary and food articles though at elevated levels declined marginally.

The key macroeconomic inflation data comes a day after the Consumer Price Index (CPI) for January showed an accelerating trend.

January WPI

(With inputs from IANS)

First Published:Feb 14, 2020 1:27 PM IST