Paddy, pulses push wholesale inflation to 9-month high in Dec

Sandeep Dikshit

New Delhi, January 15

The wholesale price index (WPI)-based inflation rose to a nine-month high of 0.73% in December 2023, mainly due to a sharp rise in food prices.

The index for primary articles (mainly food items), which accounts for nearly a quarter of the weight, rose by 5.39% as against 4.69% in November and 1.46% in October. In this sub-index, the grouping for food articles rose by a whopping 9.38% from 8.18% in November. The rate of inflation was especially sharp in case of paddy (10.54%), pulses (19.60%) and vegetables (26.3%).

The WPI inflation was in the negative zone from April to October and had turned positive in November at 0.26%. In December last year, it was 5.02%. The last high level of WPI inflation was recorded in March 2023, when it was 1.41%.

“Positive rate of inflation in December 2023 is primarily due to increase in prices of food articles, machinery and equipment, other manufacturing, other transport equipment and computer, electronics and optical products etc,” said a Commerce Ministry statement.

The index for primary articles segment (weight 22.62%) declined by 2.14% mainly due to a decline in prices of non-food articles (-0.18%), minerals (-1.91%), food articles (-2.30%) and crude petroleum and natural gas (-4.28%) as compared to November.

The index for fuel and power (weight 13.15%) declined by 0.71%. Though prices of electricity (1.34%), the group saw a decline in prices of mineral oils (-1.54%) in December as compared to November.

The index for manufactured products (weight 64.23%) decreased by 0.21%. Out of the 22 two-digit groups for manufactured products, 15 groups showed an increase in prices and seven decreased. Prices increased in case of machinery, pharmaceuticals, electrical equipment and motor vehicles. Prices decreased in basic metals, food products, textiles and chemical products.

Increases to 0.73%

• The wholesale inflation was in the negative zone from April to October and had turned positive in November at 0.26%
• The last high level of wholesale inflation was recorded in March 2023, when it was 1.41%
• Inflation in vegetables and pulses was 26.30% and 19.60%, respectively, while in paddy it was 10.54% in December 2023