Fuel prices pushes WPI inflation to 5.25 per cent in January

High fuel inflation pushes up index as food prices keep on falling

Wholesale prices in the country continued to rise in January, under pressure from rapidly increasing diesel and petrol prices.

The Wholesale Price Index (WPI)-based inflation for January went up to 5.25 per cent from 3.39 per cent in December and 3.15 per cent the month before.

In December 2015, WPI inflation was a negative 1.07 per cent.

Data from the commerce ministry on Tuesday showed that food prices continued to fall in January by 0.56 per cent. As compared to this, prices of high speed diesel rose by a massive 31 per cent while petrol prices rose by 15.66 per cent.

The overall inflation index of the fuel and power segment also shot up to 18.44 per cent from 8.65 per cent in the previous month.

Both the commodities had picked up in December when diesel rose by 20.25 per cent and petrol by 8.52 per cent.

On the other hand, Retail inflation, measured in terms of Consumer Price Index (CPI), fell to a 5 year low of 3.17 per cent in January mainly on account of declining prices of food items including vegetables and pulses.

CPI was at 3.41 per cent in December and the latest figures, issued on Monday, have been impacted by the demonetisation drive, experts said.