WPI inflation in Dec rises to 2.37% amid spike in food article prices
India’s wholesale price index (WPI) in December rose to 2.37 per cent from 1.89 per cent in November 2024, data released by the Commerce and Industry Ministry said on Tuesday.
The annual rate of inflation based on all India Wholesale Price Index (WPI) inched to a four-month high of 2.36% (Provisional) for October 2024 over the last year.
Inflation in October is primarily due to an increase in prices of food articles, manufacture of food products, other manufacturing, manufacture of machinery & equipment, manufacture of motor vehicles, trailers & semi-trailers, etc.
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The month-over-month change in WPI for October stood at 0.97% as compared to September.
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The Food Index consisting of ‘food articles’ from the primary articles group and ‘food product’ from the manufactured products group increased from 195.3 in September to 201.2 in October.
The rate of inflation based on the WPI Food Index increased from 9.47% in September to 11.59% in October.
Prices of food articles (3.37%) and crude petroleum & natural gas (0.41%) increased in October as compared to September. The Price of minerals (-1.67%) and non-food articles (-0.37%) declined in October.
Rahul Agrawal, Senior Economist, ICRA said, “Owing to the expected softening in food inflation, ICRA estimates the WPI inflation to ease to ~2.0% in November 2024.”
“Looking ahead, the robust increase in kharif output for most food items and the healthy outlook for rabi crops amid elevated reservoir levels, augurs well for the WPI food inflation prints in the near term, even as fertiliser stocks are monitorable. However, the outlook for the headline WPI inflation remains vulnerable to movements in global commodity and crude oil prices,” he added.
The index for Fuel & Power declined by 0.27% to 146.5 (provisional) in October from 146.9 (provisional) in September.
The price of electricity (1.18%) increased in October and the price of mineral oils (-0.84%) and coal (-0.07%) decreased in October.
Manufactured Products index increased by 0.49% to 142.5 (provisional) in October.
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