WPI increases to 0.73 % in Dec driven by higher food prices

Wholesale inflation rises: The wholesale price index (WPI)-based inflation has risen from 0.26 per cent in November to 0.73 per cent in December 2023, the data released by the government showed on Monday.  It was in November when wholesale inflation bounced back in positive territory after a gap of seven months. The WPI was in negative territory for seven months till November. 

"Positive rate of inflation in December 2023 is primarily due to increase in prices of food articles, machinery & equipment, other manufacturing, other transport equipment and computer, electronics & optical products etc.," the ministry said in the announcement.

Earlier in March, the WPI-based inflation was 1.34 per cent before falling to -0.92 per cent in April. 

The Food Index consisting of 'Food Articles' from the Primary Articles group and 'Food Product' from the manufactured products group has decreased from 183.1 in November 2023 to 179.9 in December 2023. 

“The rate of inflation based on WPI Food Index increased from 4.69 per cent in November 2023 to 5.39 per cent in December 2023,” the government release shows today. 

Retail Inflation

Last week, the government data showed that that India’s retail inflation hit a four-month high of 5.69 per cent in December, compared to 5.55 per cent in November. 

This is above the Reserve Bank of India's (RBI) medium-term target of four per cent, but within its 2–6 per cent tolerance range. This is the 51st consecutive month that the retail inflation has remained above the RBI's medium.