WPI Inflation Falls To 13.6% In December

New Delhi

The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade is releasing index numbers of wholesale price in India (Base Year: 2011-12) for the month of December, 2021 (Provisional) and for the month of October, 2021 (Final) in this press release. Provisional figures of Wholesale Price Index (WPI) are released on 14th of every month (or next working day) with a time lag of two weeks of the reference month and compiled with data received from institutional sources and selected manufacturing units across the country. After 10 weeks, the index is finalized and final figures are released and then frozen thereafter.

The annual rate of inflation is 13.56% (Provisional) for the month of December, 2021 (over December, 2020) as compared to 1.95% in December, 2020. 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. 

Wholesale inflation eased in December. At that time, the Wholesale Price Index (WEPI) was down 13.56 percent. In November, the rate was 14.23 percent. In December 2020, the wholesale inflation rate was only 1.95 percent. Inflation in December was 10.72 per cent and in November it was 11.92 per cent. Inflation in vegetables was 31.56 per cent in December and 3.91 per cent in November. In the case of eggs, meat and fish, the inflation rate in December was 7.8 per cent as against 9.6 per cent in November.

Onion prices rose -19.06 per cent in December, compared to -30.10 per cent in November. Potato inflation was -42.10 per cent in December and -49.54 per cent in November. Primary article inflation was 13.36 per cent in December and 10.34 per cent in November. In the case of fuel and energy, the inflation rate was 32.30 per cent in December and 39.61 per cent in November. On the other hand, food inflation rose to 9.24 per cent in December from 8.70 per cent in November. It is to be noted that inflation has been steadily rising for the last four months. Wholesale price-based inflation has been in double digits for nine consecutive months since April. Inflation was 14.23 percent in November last year and 1.95 percent in December 2020.

Source : PIB