Wholesale inflation down to eight month low at 3.80 per cent
Mumbai, Jan 14 (IBNS) :Wholesale inflation eased to 3.80 per cent (provisional) in December from 4.64 per cent in the previous month, recording eight month low, the Government said on Monday.
In the corresponding month of the previous year, the wholesale inflation was 3.58 per cent.
The decline in wholesale inflation was attributed to a smaller increase in food and fuel prices.
Build up inflation rate in the financial year so far was 3.27 per cent compared to a build up rate of 2.21 per cent in the corresponding period of the previous year.
Food inflation stood at - or the rate of increase in food prices - was at 0.07 per cent last month, as against a food deflation of 1.96 per cent in November 2018, the Ministry of Commerce and Industry said in a statement. Deflation - or negative inflation - determines the rate of decrease in prices.
Inflation in the 'fuel and power' category, which has a weightage of 13.2 per cent on the Wholesale Price Index, nearly halved to 8.38 per cent in December from 16.28 per cent in the previous month. Inflation in petrol, diesel and LPG (liquefied petroleum gas) stood 1.57 per cent, 8.61 per cent and 6.87 per cent respectively.
The government will release consumer inflation data later in the day. The Reserve Bank of India (RBI) mainly takes into account retail inflation data while formulating its monetary policy.
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