Image Source : PIXABAY Vegetable market
The Wholesale Price Index (WPI)-based inflation rose by 0.73 per cent in December, primarily driven by an increase in food prices.
The WPI inflation had been in the negative zone from April to October but turned positive in November at 0.26 per cent. The Commerce and Industry Ministry, in a statement on January 15, explained that the positive inflation rate in December 2023 is mainly due to higher prices of food articles, machinery and equipment, other manufacturing, other transport equipment, and computer, electronics, and optical products, among others, according to PTI.
“The positive rate of inflation in December 2023 is primarily due to the increase in prices of food articles, machinery & equipment, other manufacturing, other transport equipment, and computer, electronics, and optical products, etc,” the commerce and industry ministry said in a statement on January 15.
During the same period, food inflation increased to 9.38 per cent, up from 8.18 per cent in November 2023. Specifically, inflation in vegetables reached 26.30 per cent, and in pulses, it stood at 19.60 per cent in December. Additionally, the Consumer Price Index (CPI) for December surged to a four-month high of 5.69 per cent, according to data released last week.
In its bi-monthly monetary policy last month, the Reserve Bank maintained steady interest rates and highlighted the potential risks associated with the rising food inflation in November and December.
(With PTI inputs)
READ MORE: Retail inflation rises to three-month high of 5.55 per cent in November
READ MORE: Retail inflation edges up to 4-month high of 5.69 per cent in December
