Inflation slips to (-)0.9 per cent in January; stays negative for 15 months
As per the official data food inflation stood at 6.02 per cent in January as against 8.17 per cent in December.
New Delhi: Deflationary pressure persisted for the 15th month in a row as inflation at the wholesale level slipped to (-)0.9 per cent in January with some food articles turning less expensive. Although in the negative zone since November 2014, it had started showing a rising trend in the past four months - from last September.
The Wholesale Price Index-based inflation was (-)0.73 per cent in December. In January 2015, it was (-)0.95 per cent. As per the official data released on February 15, food inflation stood at 6.02 per cent in January as against 8.17 per cent in December. Expressing concern over continued deflationary pressure, industry body FICCI said government should increase public spending in the forthcoming budget to boost demand.
"The government should not shy away from recalibrating the fiscal deficit target in order to push public investments with a view to add productive capacity to the economy," FICCI said.
According to official data, inflation in pulses and onion eased to 44.91 per cent and 5.51 per cent respectively. Therate of price rise in the case of vegetables was 12.52 per cent in January and for fruits, it stood at (-)2.32 per cent. In case of potato, it was (-)17.08 per cent while for eggs, meat and fish came in at 5.69 per cent.
The inflation print in the fuel and power segment was (-)9.21 per cent and for manufactured products, it read (-)1.17 per cent in January.
"Considering that inflation is within the target level of the government and the RBI, focus of policymakers should now shift to revive GDP and industrial growth," said another industry body Assocham.