Wholesale price inflation rose to the highest level in 9 months in December, impact of increase in food prices visible

Retail inflation information launched this month confirmed a rise of 5.69 p.c in December, which was 5.55 p.c in November. Family budgets have elevated on account of excessive meals costs.

Meals inflation accounts for about half of the entire shopper worth index (CPI). It elevated from 8.657 p.c to 9.05 p.c in November. Costs of greens, pulses, spices and fruits rose sharply in the course of the month. Nonetheless, falling cooking oil costs supplied some reduction.

RBI bases its financial coverage on retail inflation information.

Suman Chaudhary, Chief Economist, Acuity Rankings & Research, mentioned, “WPI remained secure at 0.73 per cent in Dec’23 from 0.26 per cent in Dec’23. This annual improve is because of the base issue.