India’s wholesale price-based inflation dropped to 1.22 per cent in December, backed by eased food pricing, data released by the commerce and industry ministry showed on Thursday.

The inflation based on Wholesale Price Index (WPI) was 1.55 per cent in November 2020, and 2.76 per cent in December 2019.

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, as per the data released by the Department for Promotion of Industry and Internal Trade.

The rate of inflation in food articles contracted 1.11 per cent after hitting a high of 3.94 per cent last month. Similarly, fuel and power index contracted 8.72 per cent against November’s fall of 9.87 per cent.

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.