India's Wholesale Price Index (WPI) inflation fell for the 15th straight month in January, declining to 0.90 percent, thanks to falling oil prices.
The index for primary articles inflation fell by 1.7 percent, while the fuel and power group declined by 2.9 per cent. Both these have the top weightages in the WPI index.
"The index for 'Food Products' group rose by 0.7 percent to 176.7 (provisional) from 175.4 (provisional) for the previous month due to higher price of sugar (5%), mixed spices and oil cakes (3% each), cotton seed oil and khandsari (2% each) and sooji (rawa), processed prawn, gola (cattle feed), sunflower oil, gingelly oil and gram powder (besan) (1% each). However, the price of vanaspati (5%), tea leaf (unblended) and coffee powder (4% each), tea leaf (blended) (3%), mustard & rapeseed oil, copra oil and rice bran oil (2% each) and bakery products, groundnut oil, powder milk and gur (1% each) declined," a release from PIB has stated.
Not much weightage is attached to the WPI index as the Reserve Bank of India uses the Consumer Price Index (WPI) index for determining its monetary policy action.
The CPI inflation has been edging up in the last few months, diminishing the prospects of rapid reduction in interest rates in India.