India’s WPI Inflation Rises To 2.37% In December

India’s Wholesale Price Index (WPI) inflation saw a slight uptick in December, rising to 2.37% compared to the same month in 2023. This is according to data released by the Ministry of Commerce and Industry on Tuesday.

The increase in WPI inflation was primarily driven by higher prices in several key sectors, including food articles, food products manufacturing, textiles, and non-food articles. However, the month-on-month change in the WPI for December showed a decline of 0.38% compared to November 2024.

Breaking down the components, the index for primary goods dropped by 2.07% from November, reflecting a decline in prices for food articles (down by 3.08%) and crude petroleum and natural gas (down by 2.87%). Conversely, the fuel and power index saw a rise of 1.90% in December, largely due to a surge in electricity prices (up by 8.81%) and a modest increase in coal prices (up by 0.07%). However, the price of mineral oils edged down by 0.06%.

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Manufactured products comprised over 64% of the WPI and remained unchanged from November. Among the 22 categories within this group, 11 saw price increases, 9 experienced price declines, and 2 remained stable. Key sectors such as textiles, fabricated metal products, non-metallic mineral products, motor vehicles, and chemicals reported price hikes. In contrast, categories like basic metals, food products, machinery, and furniture witnessed a drop.

The Food Index, which combines food articles from the primary goods category and food products from the manufactured goods category, saw a slight decrease, dropping from 8.92% in November to 8.89% in December. Given that food-related items account for 24.38% of the overall WPI, this change had a notable impact on the overall inflation figure.

Lastly, the revised final index for October stands at 2.75%, according to the updated data.

In summary, while WPI inflation saw a modest increase in December, the month-on-month data reveals mixed trends, with rising fuel and manufactured goods prices offset by declines in primary goods and certain other sectors.