India's Wholesale Inflation Rises To 0.73% In December

New Delhi: The annual rate of inflation based on all India Wholesale Price Index (WPI) number in December rose to 0.73 percent in December primarily due to increase in prices of food articles, official data showed. WPI inflation for the month of November was 0.26 percent.

Data released by the Ministry of Commerce and Industry said, “The annual rate of inflation based on all India Wholesale Price Index (WPI) number is 0.73% (Provisional) for the month of December, 2023(over December, 2022). Positive rate of inflation in December, 2023 is primarily due to increase in prices of food articles, machinery & equipment, other manufacturing, other transport equipment and computer, electronics & optical products etc.”

Inflation in Primary Articles rose to 5.78 percent as compared to 4.76 percent in November this year and 2.26 percent in October 2023. Inflation Fuel & Power was -2.41 in December as compared to -4.61 in November and -1.58 in October 2023.

The month-over-month change in WPI for the month of December, 2023 stood at (-) 0.85% as compared to November, 2023.

For the month of October, 2023 the final Wholesale Price Index and inflation rate for 'All Commodities' (Base: 2011-12=100) stood at 152.5 and (-) 0.26% respectively.

The government releases index numbers of wholesale prices on a monthly basis on the 14th of every month (or the next working day). The index numbers are compiled with data received from institutional sources and selected manufacturing units across the country.

Suman Chowdhury, Chief Economist and Head – Research, Acuité Ratings & Research said, "“On expected lines, the WPI trajectory has continued to be benign at 0.73% YoY in Dec-23 from 0.26% YoY in Nov-23. While the slight annualised uptick is on account of the base factor, there is a sequential contraction by 0.9% which is seasonally driven due to the softness in food articles."