Wholesale price Index-based Inflation raised 0.11 percent in December 2014
The wholesale price index based inflation raised marginally to 0.11 percent in December 2014 from zero percent in November 2014.
The wholesale price index (WPI)-based inflation raised marginally to 0.11 percent in December 2014 from zero percent in November 2014. Union Ministry of Commerce and Industry released the data on 14 January 2015.
The marginal rise in WPI based inflation was mainly on account of an increase in prices of food items, particularly fruit. The inflation in manufactured products has the highest weight on WPI was declined on low demand and global cues. Fuel prices also declined as global crude oil rates fell.
However, overall inflation remained moderate though it is slightly higher than November 2014.
• The WPI based inflation in pulses, vegetables and fruits were higher in December 2014 as compare to November 2014 whereas the inflation eased in wheat, milk and other protein rich items like egg, meat and fish.
• The rate food inflation raised to 5.22 percent in December 2014 from 0.63 percent of November 2014. The food inflation has fallen for four consecutive months till November 2014.
• Inflation in fruit prices stood at 17.87 percent, compared with 14.78 percent in November 2014, while the rate of inflation in milk dropped marginally to 9.72 percent in December 2014 from 10 percent of November 2014.
• The prices of non-food items within the primary group declined by 3.06 percent as compared to declined of 3.65 percent in November 2014.
• The rate of price rise or prices themselves declined for other food items during December 2014. For instance, overall vegetable prices fell 4.78 percent in December 2014 though the rate of contraction in November 2014 was much higher at 28.57 percent.
• The fuel and power category saw a contraction of 7.82 percent in prices as compared to 4.91 percent in November 2014. Within this segment, petrol turned 11.96 percent cheaper, against 9.96 percent of November 2014.
• Diesel was 6.31 percent less expensive in December 2014 when compared with 2.97 percent in November 2014, which may further reduce inflation due to its impact on cost of transportation.
• Inflation in manufactured items declined to 1.57 percent as against 2.04 percent in November 2014.
• The inflation in beverages and tobacco also declined in December 2014 and same in the case of machinery and machine tools.
• The inflation eased in cotton textile and man-made textiles segments.
• The retail inflation measured on consumer price index (CPI) had inched up to 5 percent for December 2014 while the inflation was 4.38 percent in November 2014.