This is way higher than estimates and once again raises fears of inflation rearing its head again.
The index for ‘Food Articles' group rose by 1.0 per cent thanks to increase in the price of food items like jowar (8 per cent), ragi (4 per cent), fruits & vegetables, maize, urad and moong (3 per cent each) etc.
The index for the fuel group rose by 0.2 per cent to 213.1 (provisional) from 212.6 (provisional) for the previous month due to higher price of high speed diesel and petrol (1 per cent each). However, the price of kerosene (2 per cent) and bitumen and LPG (1 per cent each) declined.
The manufactured products index was up 0.5 per cent, month on month, while the index for power group rose by 0.2 percent.
For the month of Jan 2014, the WPI inflation has been revised to 5.17 percent as compared to 5.05 percent as reported earlier. Build up inflation rate in the financial year so far was 5.70 per cent compared to a build up rate of 5.65 per cent in the corresponding period of the previous year.
The rise in the WPI inflation is not good news for the markets which might now expect another rate hike by the Reserve Bank of India in its next policy meet.