Team News Riveting
New Delhi, February 14
The annual rate of inflation is 12.96 per cent (Provisional) for the month of January, 2022 (over January, 2021), which is a continuous decline from 14.87 per cent in November, 2021 and 13.56 per cent in December, 2021.
The high rate of inflation in January, 2022 is primarily due to rise in prices of mineral oils, crude petroleum and natural gas, basic metals, chemicals and chemical products, food articles etc as compared the corresponding month of the previous year.
The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT) released index numbers of wholesale price in India (Base Year: 2011-12) for the month of January, 2022 (Provisional) and for the month of November, 2021 (Final) today. The provisional figures of Wholesale Price Index (WPI) are released on 14th of every month (or next working day) with a time lag of two weeks of the reference month and compiled with data received from institutional sources and selected manufacturing units across the country. After 10 weeks, the index is finalized and final figures are released and then frozen thereafter.
Month over Month Change in Major Groups of WPI:
- Primary Articles (Weight 22.62%):- The index for this major group declined by (-1.67%) to 165.0 (provisional) in January, 2022 from 167.8 (provisional) for the month of December, 2021. Prices of Minerals (11.08%) and Non-food Articles (0.37%) increased in January, 2022 as compared to December, 2021. Prices of Food Articles (-2.61%) and Crude Petroleum & Natural Gas (-5.11%) declined in January, 2022 as compared to December, 2021.
- Fuel & Power (Weight 13.15%):- The index for this major group increased by (3.90%) to 133.2 (provisional) in January, 2022 from 128.2 (provisional) for the month of December, 2021. Prices of Electricity (15.94%) and Mineral Oils (0.83%) increased in January, 2022 as compared to December, 2021. Prices of coal remain unchanged.
- Manufactured Products (Weight 64.23%):- The index for this major group increased by (0.51%) to 137.1 (provisional) in January, 2022 from 136.4 (provisional) for the month of December, 2021. Out of the 22 NIC two-digit groups for manufactured products, 18 groups that have witnessed increase in prices while 3 groups have witnessed decrease in prices in January, 2022 as compared to December, 2021. The increase in prices is mainly contributed by basic metals; motor vehicles, trailers and semi-trailers; machinery and equipment; textiles; and chemicals and chemical products. Some of the groups that have witnessed decrease in prices are manufacture of wood and of products of wood and cork; tobacco products; and pharmaceuticals, medicinal chemical and botanical products. While the Manufacture of beverages remain unchanged in January, 2022 as compared to December, 2021.
WPI food index (Weight 24.38%): The Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group have decreased from 169.0 in December, 2021 to 166.3 in January, 2022. The rate of inflation based on WPI Food Index increased marginally from 9.24% in December, 2021 to 9.55% in January, 2022.
Final index for the month of November 2021 (Base Year: 2011-12=100): For the month of November, 2021 the final Wholesale Price Index and inflation rate for ‘All Commodities’ (Base: 2011-12=100) stood at 143.7 and 14.87% respectively. The details of All India Wholesale Price Indices and Rates of Inflation for different commodity groups for January, 2022 are at Annex I. The Annual rate of Inflation (Y- o-Y) based on WPI for different commodity groups in the last six months are at Annex II. The WPI Index for different commodity groups in the last six months is at Annex III.
Response Rate: The WPI for January, 2022 have been compiled at a weighted response rate 75.4 percent, while the final figure for November, 2021 is based on the weighted response rate of 94.0 percent. The Provisional figures of WPI will undergo revision as per the final revision policy of WPI.
