India’s wholesale inflation rose to 2.37% in December, compared to 1.89% in November, despite a drop in food prices, according to government data released on January 14.
The Wholesale Price Index (WPI) inflation for December (year-on-year) came in at 2.37%, slightly higher than the expected 2.30% and up from November’s 1.89%. Food inflation under WPI eased to 8.47% from 8.63%. Meanwhile, manufacturing inflation increased slightly to 2.14% from 2.00%, and fuel inflation improved but remained negative, rising to -3.79% from -5.83%.
Food prices increased by 8.89% in December, slightly lower than the 8.92% rise in November. Vegetable prices saw a 28.65% rise, which was just above the 28.57% increase from the previous month. Cereal prices went up by 6.82% in December, compared to a 7.81% rise in November.
Manufactured product prices, which make up about 64% of the wholesale price index, rose by 2.14%, up from a 2% increase in the previous month. Fuel and power prices fell by 3.79% year-on-year, an improvement from the 5.8% drop seen in November.
December marks the fifth month in 2024 with WPI inflation staying above 2%, while retail inflation dropped to a four-month low of 5.22%. Notably, WPI food inflation fell below 9% for the first time this year, settling at 8.47%.
India’s Consumer Price Index (CPI) for December showed a rise of 5.22% compared to the same period last year. This was lower than the expected 5.30% and also down from November’s 5.48%.
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