New Delhi, Jan 15: The Wholesale Price Index (WPI)-based inflation for December witnessed a rise, reaching 0.73%, primarily attributed to a notable surge in food prices. The WPI inflation had remained in the negative zone from April to October but turned positive in November at 0.26%.
The commerce and industry ministry stated on Monday that the positive inflation rate in December 2023 was mainly a result of increased prices in categories such as food articles, machinery & equipment, other manufacturing, other transport equipment, and computer, electronics & optical products.
Food inflation specifically rose to 9.38% in December, up from 8.18% in November 2023. Notable increases were observed in vegetables, with an inflation rate of 26.30%, and pulses, registering a 19.60% inflation rate for December.
This rise in wholesale inflation aligns with the recent Consumer Price Index (CPI) data for December, which marked a four-month high at 5.69%. The Reserve Bank, in its bi-monthly monetary policy last month, kept interest rates unchanged and highlighted concerns about the potential escalation of food inflation in November and December.
