Wholesale Inflation came down drastically to a seven month low of 5.05 percent in January compared to a rise of 6.16 per cent in December. Vegetables Inflation registered at 16.60 per cent, compared to 57.33 per cent in December however Inflation of milk grew by 7.72 percent. Fruits, Eggs, meat and Fish are available at much cheaper prices while Onions price fell over 300 percent in 4 months.
This decline in Inflation is because of Reserve Bank of India's increase in the Repo [Policy] Rate by 0.25 percent twice. Now demands are growing to relax the Policy rate by RBI but it may take some time added analysts.