India’s wholesale price Index- inflation relaxed

16/01/2023

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India’s wholesale price Index- inflation relaxed

Data from the Commerce Ministry showed that India’s wholesale price index-based inflation got relaxed to 4.95 per cent in December from 5.85 per cent in November on an annual basis.

The inflation rate has slid below 5 per cent for the first time since Feb 2021.

The month-on-month change in WPI index for December 2022 showed a contraction of 1.12 per cent as against a contraction of 0.26 in the preceding month.

Contributed declining effect:

The primary contribution of declining the rate of inflation in December 2022 is lead by fall in prices of food articles, mineral oils, crude petroleum & natural gas, food products, textiles and chemicals & chemical products.

Inflation for food articles relieved to 0.65 per cent from 2.17 per cent in November. For the primary articles segment, the inflation rate stood at 2.38 per cent as against 5.52 per cent in the month before.

Wholesale inflation in crude petroleum and natural gas relaxed to 39.71 per cent in December. In November, it stood at 48.23 per cent.

Fuel and power inflation soared to 18.09 per cent from 17.35 per cent in November.

Different group’s data:

The index for this major group went down by 1% to 158 (provisional) in December, 2022 from 159.6 (provisional) for the month of November, 2022.

Prices of Electricity (9.51%) heightened in December, 2022 as compared to November, 2022. Prices of Mineral Oils (4.64%) rejected in December, 2022 as compared to November, 2022.

Inflation for manufactured products registered at 3.37 per cent in December.

Recently, the retail inflation for the month of December comforted to a year low of 5.7 per cent. It has stayed within RBI’s tolerance band of 2-6 per cent for two consecutive months.