WPI inflation cools to 22-month low of 4.95% in December

The wholesale price-based inflation declined to a 22-month low of 4.95% in December 2022, mainly due to fall in prices of food articles, especially vegetables, and oilseeds.

The Wholesale Price Index (WPI)-based inflation was 5.85% in November 2022 and 14.27% in December 2021.

Last month, declining prices of vegetables and onions pulled down inflation rate of food articles by (-)1.25%.

Also read: WPI inflation declines to 21-month low of 5.85 pc in November

However, wheat, pulses and potato remained expensive, along with protein-rich items like milk and egg, meat and fish.

Wholesale inflation in vegetables declined by 35.95%, and onion by 25.97%.

In non-food articles, oilseeds and minerals too recorded a decline in inflation by 4.81% and 2.93%, respectively.

The decline in the rate of inflation in December 2022 is primarily contributed by fall in prices of food articles, mineral oils, crude petroleum &  natural gas, food products, textiles and chemicals & chemical products, the commerce and industry ministry said in a statement.

Also read: WPI dips to 8.39% after a 19-month gap

The last low level of WPI inflation was recorded in February 2021 at 4.83%.

The deceleration in WPI comes in line with retail inflation data released last week which showed CPI inflation eased to 5.72% in December. The consumer price index (CPI)-based inflation remained within the RBIs upper tolerance limit of 6% for the second month in a row.

As per data released on Monday, WPI inflation in fuel and power rose marginally from 17.35% in November to 18.09% in December 2022, while in manufactured products it softened to 3.37% last month.

WPI inflation in crude petroleum & natural gas cooled to 39.71% in December, against 48.23% in the previous month.