New Delhi: From a rise of 2.96 percent in January, 2014, manufactured products` inflation advanced to 1.05 percent in the month under review. The deceleration in WPI-based inflation comes on the back of retail inflation gaining momentum.
The consumer price index (CPI) based inflation in January stood at 5.11 percent month-on-month. Measured by the Central Statistical Office (CSO) on a new base year of 2012, the January inflation rose mainly due to higher food prices, including fruits and vegetables.
The Consumer Price Index inflation in December was 5 percent with 2010 as the base year. The December retail inflation based on the CPI, recalculated with the new base year, was at 4.28 percent. Food inflation in January was 6.13 percent due to costlier fruits, vegetable and cereals.
The RBI has set a target for CPI inflation at 8 percent by January 2015 and 6 percent by January 2016. The current WPI and CPI data will boost India Inc.`s hope for a rate cut from the apex bank in its next monetary policy announcement.
