Wholesale price-based inflation fell to 4.95 per cent yearly (YoY) in December 2022, primarily due to lower food and crude petroleum prices.
In November 2022, WPI-based inflation was 5.85 per cent and 14.27 per cent was in December 2021. The month-over-month change in WPI for December was -1.12 per cent compared to November.
In December 2022, food inflation was -1.25 per cent, while fuel and power inflation was 18.09 per cent. The commerce and industry ministry reported a 3.37 per cent inflation in manufactured goods during the month.
The fall in prices of food items, mineral oils, crude petroleum and natural gas, food products, textiles and chemical products is primarily responsible for the decrease in the rate of inflation in December 2022.
According to the ministry, “Printing and reproduction of recorded media, electrical equipment, other non-metallic mineral products, furniture and beverages, and so on, have all contributed to the price increase.
Food products, textiles, chemical products, basic metals, paper and paper products, motor vehicles, trailers and semi-trailers and so on have all seen price decreases in December 2022 as compared to November 2022, the ministry said in a statement.
The WPI-based inflation rate – the Food Index fell from 2.17 per cent in November 2022 to 0.65 per cent in December 2022. Prices for non-food items and minerals rose in December. While food prices, crude petroleum and natural gas prices fell.