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Wholesale price inflation rises to 2.59% in December

A sharp rise in food articles inflation drove India’s wholesale inflation to 2.59 per cent in December, data released by the commerce and industry ministry showed.

, ET Bureau|
Updated: Jan 14, 2020, 11.30 PM IST
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CPI
Primary articles inflation at 11.46 percent in December v/s 7.68 percent in November.
NEW DELHI: India’s wholesale inflation accelerated to 2.59% in December, driven up by food articles especially onion, data released by the commerce and industry ministry showed on Tuesday.

Wholesale price inflation was 0.58% in November.

The annual inflation, based on monthly wholesale price index (WPI), was 3.46% in December 2018.

Inflation in onions accelerated 455.8% last month from 172.3% in November while that in vegetables gained 69.7%. In potato, the rate surged almost 45% compared to an 8.51% decline in November.

In manufactured products, which have a 64.23% weight in the index, the rate was a negative 0.25% from a 0.84% decline in November. In fuel and power, it was a negative 1.46%.

Official data released Monday showed the retail inflation rate rising to its highest in more than five years in December at 7.35% following a spike in food prices, breaching the targeted outer limit and effectively ruling out the possibility of further interest rate cuts by the central bank.
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Economists expect a pause in the next monetary policy review, based on the expectation that the retail inflation will harden further.
The Reserve Bank of India has cut interest rates by a cumulative 1.35 percentage point this year.

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