A drop in fuel price brought a fall in the wholesale price inflation to an eight-month low in December.
On Monday, official data showed that the rate fell to 3.80 per cent in December 2018 from 4.64 per cent in November.
But the data from the Ministry of Commerce also revealed that the annual rate of inflation based on monthly WPI was 3.58 per cent during the corresponding month of the previous year which was lower than the current WPI on a year-on-year (YoY) basis.
“The annual rate of inflation, based on monthly WPI, stood at 3.80 per cent (provisional) for the month of December, 2018 (over December, 2017) as compared to 4.64 per cent (provisional) for the previous month and 3.58 per cent during the corresponding month of the previous year,” the Ministry said in its review of ‘Index Numbers of Wholesale Price in India’ for December.
“Build up inflation rate in the financial year so far was 3.27 per cent compared to a build up rate of 2.21 per cent in the corresponding period of the previous year,” it added.
The index for fuel and power witnessed the sharpest decline. Data revealed that it fell by 5.9 per cent to 103.5 (provisional) from 110.0 (provisional) for the previous month.
There was also a fall in inflation in manufactured products and primary articles.
The index for primary articles, a major group, declined by 1.8 per cent to 134.7 (provisional) from 137.2 (provisional) for the previous month, the Ministry revealed.
Within the major group, the index for Crude Petroleum & Natural Gas group declined by 11.9 per cent but for Minerals group rose by 7.7 per cent. The index for Food Articles declined by 1.4 per cent.
According to the Ministry, the rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group increased from -1.96 per cent (minus 1.96 per cent) in November 2018 to 0.07 per cent in December 2018.