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Wholesale inflation at 3.8% in December vs 4.64% in November

According to the government data, deflation in food articles stood at 0.07 percent in December against 3.31 percent in November.
Jan 14, 2019 / 12:07 PM IST

Wholesale prices in India eased to a eight-month low of 3.8 percent in December, as compared to 4.64 percent in November, due to cheaper food and fuel prices, data released by the commerce and industry ministry on January 15 showed.

Wholesale inflation, measured by the Wholesale Price Index (WPI), grew 3.58 percent in December, 2017.

The WPI is a marker for price movements in bulk buys for traders and broadly mirrors trends in shop-end prices.

Prices of primary articles — including food articles — which account for more than a fifth of the entire wholesale price index, came in at 2.28 percent in December as against 0.88 percent in November and 3.86 percent a year ago.

While food articles, onions, vegetables and fruits witnessed negative growth in December, for the first time in more than a year prices of pulses showed a positive growth, indicating that farmers could be getting better prices for the commodity.

Potatoes continued to remain expensive, with their prices rising 48.68 percent from 86.45 percent in November. Similarly, wheat prices, which continued to show a similar trend grew 9.61 percent in December from 9.18 percent a month ago, while cereals grew 7.59 percent from 7.23 percent in November, indicating some impact of Minimum Support Price (MSP) on the crops.

Prices of manufactured products, which account for close to two-thirds of the index, stood at 3.59 percent in December, compared to 4.21 percent a month ago.

Prices of fuel and power, which together have a weightage of 13.15 percent on WPI, grew at 8.38 percent in December, as against a rise of 16.28 percent in November.
Moneycontrol News
first published: Jan 14, 2019 12:07 pm

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