India’s wholesale price index (WPI) inflation witnessed a sharp moderation of nearly 1% as it slipped to 4.95% in December mainly driven down by cooling food prices.
The November WPI inflation stood at 5.85%. Food price inflation softened to 0.65% in December from 2.17% in November.
“Decline in the rate of inflation in December, 2022 is primarily contributed by fall in prices of food articles, mineral oils, crude petroleum & natural gas, food products, textiles and chemicals & chemical products,” the official release said.
The month-on-month WPI inflation stood at -1.12% as compared to November.
The manufacturing inflations slowed to 3.37% in December from 3.59% in November. In the manufacturing basket of goods, food products, textiles, chemical products are some of the item that saw a decline inflation.
“Some of the groups that have witnessed decrease in prices are food products; textiles; chemicals and chemical products; basic metals; paper and paper products; motor vehicles, trailers and semi-trailers etc. in December, 2022 as compared to November, 2022,” the official release said.
The retail inflation for the month of December also continued on the downward trajectory easing to 5.72% from November’s 5.88%. This is the second month in a row that the retail inflation figures have come within the RBI’s tolerance band of 2-6%.
The RBI Monetary Policy Committee (MPC) is expected to take into account the falling inflation and could soon end the current rate hike cycle.
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