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As per the official data released on Tuesday, India's wholesale price index (WPI) inflation shot up to 2.37% in December compared to 1.89% in November, mainly because of expensive manufactured goods and a lower baseline effect. This WPI inflation
As against it, the WPI inflation stood at 0.86 percent a year ago in December last year. Marked improvement from the previous year at 0.061 percent
The Union Ministry of Commerce and Industry reported that food inflation decreased a little to 8.47 percent in December from 8.63percent in November on the back of lower draft in cereals (6.82 percent), paddy (6.93 percent), wheat (7.63 percent) and pulses (5.02 percent).
In December, vegetables (28.65 percent), potatoes (93.2 percent), fruits (11.16 percent), milk (2.26 percent), and meat (5.43 percent) average huge increase of unsold produce.
However, the fuel and power segment registered persistent deflationary trend, recording a reduction of 3.79% in December. Respectively and separately the indices of the fuel and power sector and service sector registered a seven year high of 225.67 and 200. Inflation indicators.
According to the index, onions showed inflation at 196 percent while potatoes reported 203 percent increase during the month compared to 34 percent in the previous month. In the manufactured products segment which constitutes 64.2 percent of the index, the inflation number increased to 2.14 percent in comparison to 2 percent in November.
In December, the consumer price index (CPI) fell to 5.22 percent due to the decreasing food prices.it marks a four-month low and is a decrease from November’s 5.48 mark.
Despite rising retail inflation, India’s Reserve Bank held the benchmark repo rate at 6.50 for the 11th time in a row claiming to take a neutral stance.
As for wholesale prizes, the liquor prices increased by 1.3 percent while the spice and condiments prices remained unchanged.
