INDIA BUSINESS

WPI inflation eases to 13.56% in Dec
January 15, 2022

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Illustration: Neeharika Balaji

One-liner: The wholesale price-based inflation bucked the 4-month rising trend in Dec 2021 mainly on account of softening in fuel, power and manufacturing items even though food prices hardened.

In double digits: WPI inflation has remained in double digits for the ninth consecutive month beginning April. Inflation in Nov was 14.23%, while in Dec 2020 it was 1.95%.

  • "The high rate of inflation in Dec 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." - Commerce and Industry Ministry statement

Manufacturing inflation lower: Inflation in manufactured items was lower at 10.62% in Dec, against 11.92% in the previous month.

Fuel prices rise: In fuel and power basket the rate of price rise was 32.30% in Dec, against 39.81% in Nov.

Veg prices spike: Inflation in food articles, however, witnessed an uptick on a month-on-month basis at 9.56% in Dec, against 4.88% in Nov. Vegetable price rise rate spiked to 31.56%, against 3.91% in the previous month.

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