NEW DELHI: Wholesale inflation (WPI) in December 2022 fell below 5% for the first time since February 2021. The WPI in December 2022 was 4.95%, as per data released by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce.
This is for the third consecutive month, WPI showed single-digit growth – in November WPI was 5.85% and in October, it was 8.67%. WPI remained above 10% from April 2021 to September 2022. “Fall in rate of inflation in December 2022 is mainly contributed by decline in prices of food articles, mineral oils, crude petroleum & natural gas, food products, textiles and chemicals & chemical products,” says the statement issued on Monday. Wholesale inflation of primary articles fell from 5.52% in November 2022 to 2.38% in December 2022.
“The drop in primary articles was largely on account of a massive decline in prices of vegetables (36.0% yoy, a new record in the 2011-12 series) owing to seasonal factors and a high base of same period last year (December 2021: 31.5%),” says Sunil Sinha, principal economist, India Ratings & Research.