Wholesale inflation eases to 1.22 pc in December

New Delhi: Inflation based on the Wholesale Price Index moderated to 1.22 per cent in December as prices of onion and potato eased, data released by the government on Thursday showed.

The WPI inflation was 2.76 per cent in December 2019 and 1.55 per cent in November 2020.

“The rate of inflation based on WPI Food Index decreased from 4.27 per cent in November 2020, to 0.92 per cent in December 2020,” said the Department for Promotion of Industry and Internal Trade which released the data.

The rate of price rise on wholesale basis in the vegetables basket declined to (-) 13.2 per cent in December, as against 12.24 per cent inflation in the preceding month.

The data showed onion prices fell by 54.69 per cent in December, as against a decline of 7.58 per cent in November.

The inflation in potato eased to 37.75 per cent in December from 115.12 per cent in November.

The data showed the rate of inflation in cereals, paddy, wheat and pulses, also eased in December over the previous month.

The wholesale prices of fruits were, however, higher in December compared to November.

While inflation in food prices eased, the rate of price rise in manufactured goods rose to 4.24 per cent in December.

It was 2.97 per cent in November. Manufactured products, include food products, beverages, textiles, chemicals, pharmaceuticals and cement.

The WPI-based inflation in fuel and power segment too increased marginally during the month under review.

On Tuesday, government data also showed that retail inflation had fallen to 4.59 per cent in December, mainly due to declining food prices.

Retail inflation based on the Consumer Price Index (CPI) was 6.93 per cent in November. (UNI)