India's December WPI inflation eases to 4.95%

The wholesale price-based inflation declined to 4.95 per cent in December 2022, mainly due to fall in prices of food articles and crude petroleum.

The Wholesale Price Index (WPI)-based inflation was 5.85 per cent in November 2022 and 14.27 per cent in December 2021.

Inflation in food articles was (-)1.25 per cent, while in fuel and power it was 18.09 per cent during December 2022. Inflation in manufactured products was 3.37 per cent during the month, the commerce and industry ministry said in a statement.

"The 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," it said.

"Low manufacturing inflation is a reflection of cooling global commodity prices. This will continue as the world moves further to recession," said Madan Sabnavis, economist at Bank of Baroda.

December WPI inflation was lowest since February 2021, according to Refinitiv data.