Wholesale inflation increases to 0.73 per cent in December on rising food prices

The Wholesale Price Index (WPI)-based inflation rose by 0.73 per cent in December, primarily pushed by a rise in food prices.

The WPI inflation had been in the damaging zone from April to October however turned optimistic in November at 0.26 per cent. The Commerce and Industry Ministry, in an announcement on January 15, defined that the optimistic inflation price in December 2023 is principally due to greater prices of food articles, equipment and gear, different manufacturing, different transport gear, and laptop, electronics, and optical merchandise, amongst others, in accordance to PTI.

“The positive rate of inflation in December 2023 is primarily due to the increase in prices of food articles, machinery & equipment, other manufacturing, other transport equipment, and computer, electronics, and optical products, etc,” the commerce and trade ministry mentioned in an announcement on January 15.

During the identical interval, food inflation elevated to 9.38 per cent, up from 8.18 per cent in November 2023. Specifically, inflation in greens reached 26.30 per cent, and in pulses, it stood at 19.60 per cent in December. Additionally, the Consumer Price Index (CPI) for December surged to a four-month excessive of 5.69 per cent, in accordance to knowledge launched final week.

In its bi-monthly financial coverage final month, the Reserve Bank maintained regular rates of interest and highlighted the potential dangers related to the rising food inflation in November and December.

(With PTI inputs)

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