WPI Inflation: Based on the rising wholesale prices for four consecutive months, the inflation rate stopped in December 2021 last month. However, it still remained in double digits for the ninth consecutive month.
WPI Inflation: Based on the rising wholesale prices for four consecutive months, the pace of inflation stopped in the last month of December 2021. According to the data released by the government, WPI inflation fell to 13.56 percent last month. This fall in inflation based on the Wholesale Price Index was due to softening in the prices of oil, electricity and manufacturing items. However, it still remained in double digits for the ninth consecutive month. WPI inflation stood at 14.23 per cent in November 2021 and 1.95 per cent in December 2020.
Rise in prices year-on-year inflation rate high
WPI inflation remained in double digits for the ninth consecutive month and remained high on a year-on-year basis. On this, the Commerce and Industry Ministry said in its statement that due to the increase in the prices of mineral oil, basic metals, crude petroleum and natural gas, chemicals and chemical products, food products, textile and paper products, etc. The rate remained high.
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However, compared with November 2021, the inflation for manufactured items fell from 11.92 per cent to 10.62 per cent last month, while that of fuel and power baskets slipped from 39.81 to 32.30 per cent. In contrast, there was a sharp rise in the inflation of food articles. Inflation of food articles increased from 4.88 per cent in November 2021 to 9.56 per cent in December. The rate of increase in the price of vegetables (inflation) increased from 3.91 percent to 31.56 percent during this period.
Retail inflation at 6-month record high
Due to the increase in the prices of food items, the rate of increase in retail inflation reached 5.59 percent in December 2021, which is the highest since July last year. On the other hand, the growth of industrial production reached a nine-month low of 1.4 per cent in November. Due to this, a double challenge has arisen in front of the government as the countdown for the budget for the next financial year 2022-23 has started. In December 2021, the rate of increase in retail inflation reached close to the upper limit of 2-6 percent set by the central bank RBI.
Retail inflation breaks 6-month record, reaches 5.59%; Industrial production growth lowest in 9 months
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