WPI Inflation Eases To 13.56 Per Cent In December, Says Govt

WPI inflation has remained in double digits for the ninth consecutive month beginning April. Inflation in November was 14.23 per cent, while in December 2020 it was 1.95 per cent

New Delhi: India’s annual wholesale price-based inflation (WPI) eased marginally to 13.56 per cent in December from the previous month’s figure of 14.23 per cent which was its highest in more than a decade, the government data showed on Friday.

December’s figure was higher than 13.50 per cent forecast in a Reuters poll of analysts, pushed up by higher food prices, up 9.24 per cent on the year, versus 6.70 per cent in November.

WPI inflation has remained in double digits for the ninth consecutive month beginning April. Inflation in November was 14.23 per cent, while in December 2020 it was 1.95 per cent.

“The high rate of inflation in December 2021 is primarily due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, chemicals and chemical products, food products, textile and paper and paper products etc as compared to the corresponding month of the previous year," the Commerce and Industry Ministry said in a statement.

Inflation in manufactured items was lower at 10.62 per cent in December, against 11.92 per cent in the previous month.

In fuel and power basket the rate of price rise was 32.30 per cent in December, against 39.81 per cent in November.

Inflation in food articles, however, witnessed an uptick on a month-on-month basis at 9.56 per cent in December, against 4.88 per cent in November. Vegetable price rise rate spiked to 31.56 per cent, against 3.91 per cent in the previous month.

Data released earlier this week showed, retail inflation based on Consumer Price Index (Combined) rose to 5.59 per cent in December, from 4.91 per cent a month ago as food prices inched up.