WPI inflation eases to 13.56% in December; food articles, veggies see price rise

The wholesale price-based inflation (WPI) across the country moderated to 13.56 per cent in December 2021 driven by a dip in the prices of fuel items, bucking the four-month rising trend, according to data released by the Ministry of Commerce & Industry. 

It eased primarily on account of softening fuel, power and manufacturing items' prices although food prices hardened. 
 
WPI inflation stood at 1.95 per cent in December 2020. It had surged to over a decade high of 14.23 per cent in November (2021) owing to hardening of prices of basic metals, mineral oils, natural gas, and crude petroleum. The WPI for October was revised to 13.83 from 12.54 per cent, the data showed. 

Also Read: WPI inflation hits record high of 14.23% in November
 
WPI inflation has remained in double digits for eight successive months starting April (2021). 
 
 "The high rate of inflation in December 2021 is primarily due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, chemicals and chemical products, food products, textile and paper and paper products etc. as compared to the corresponding month of the previous year," the ministry said in the statement. 

Inflation in manufactured items was lower at 10.62 per cent in December, against 11.92 per cent in the previous month.

In the fuel and power basket, the rate of price rise was 32.30 per cent in December, against 39.81 per cent in November.

Also Read: Indian economy recovery on a 'solid path': UN report

Inflation in food articles, however, witnessed an uptick on a month-on-month basis at 9.56 per cent in December, against 4.88 per cent in November. 

The vegetable price rise rate spiked to 31.56 per cent, against 3.91 per cent in the previous month.

Data released earlier this week showed retail inflation based on Consumer Price Index (Combined) rose to 5.59 per cent in December, from 4.91 per cent a month ago as food prices inched up.