India’s wholesale prices jumped 1.81 per cent in January 2024 compared to last year, marking the highest increase in 10 months. According to government data, revealed Monday, the figures exceeded economists’ predictions of 1.25 per cent and was driven by rising vegetable prices, basic metals, and manufacturing costs.The increase was notably higher than December’s 0.83 per cent rise and reached levels not seen since March 2025, when it stood at 2.25 per cent, according to Reuters. Food prices saw a significant uptick, climbing 1.41 per cent year-on-year in January, after showing no change the previous month.Vegetables were a major contributor, with prices soaring 6.78 per cent compared to last year, reversing the previous month’s 3.5% decline. The manufacturing sector also showed strong inflation, with prices rising 2.86 per cent year-on-year, up from December’s 1.82 per cent increase.“A global rally in metal prices due to economic and political circumstances has raised the cost of manufacturing goods,” said Madan Sabnavis, chief economist at Bank of Baroda. However, he noted that this higher inflation rate would not influence monetary policy decisions.The only sector showing a decline was fuel and power, where prices fell 4.01 per cent compared to the previous year, a steeper drop than December’s 2.31 per cent decrease. This decline helped offset some of the pressure from other sectors but wasn’t enough to prevent the overall wholesale price increase.
