Wholesale inflation eases to 1.22% in Dec on decline in food prices

The wholesale price index-based inflation eased to 1.22 per cent in December on easing food prices, the data released by the commerce and industry says.

"The rate of inflation, based on monthly WPI, stood at (1.22 per cent) (provisional) for the month of December, 2020  (over  December,  2019)  as  compared  to  (2.76%)  during  the  corresponding  month  of  the  previous year," says a government statement.

The WPI inflation for primary articles index declined by 3.11 per cent in December, while fuel and power index saw 3.18 per cent increase. The WPI inflation for manufactured products increased 1.4 per cent as compared to November.

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.

It is to be noted here that retail inflation had also dropped sharply to 4.59 per cent in December, mainly due to declining food prices.

The inflation rate in November 2020 stood at 6.93 per cent. This is the lowest point in retail inflation since March last year, when it was pegged at 5.84 per cent, marking a return to the comfort range of 2-6 per cent prescribed by the Reserve Bank of India (RBI) for the first time in nine months.

Also read: Retail inflation declines to 4.59% in December, back in RBI's comfort range

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