<p>New Delhi: The annual wholesale price inflation rose to 2.37 per cent in December from 1.89 per cent recorded in the previous month driven by rise in prices of manufactured products and a low base effect, data released by the <a href="https://www.deccanherald.com/tags/commerce-ministry">Commerce Ministry</a>, on Tuesday, showed.</p>.<p>The wholesale price index (WPI) based inflation stood at 0.86 per cent in December 2023.</p>.<p>After nearly two years of decline, inflation in wholesale non-food articles jumped to 2.5 per cent in December.</p>.<p>Wholesale food inflation eased marginally to 8.89 per cent in December from 8.92 per cent recorded in the previous month. Despite marginal easing, food prices remained the key driver of the inflationary pressure in the country.</p>.<p>Vegetables became costlier by 28.65 per cent in the wholesale market year-on-year. Potato prices almost doubled, with wholesale inflation of the kitchen staple coming in at 93.20 per cent in December. The price of onions was 16.81 per cent higher when compared with the same month last year, while fruits became costlier by 11.16 per cent year-on-year.</p>.<p>“Going forward, a seasonal correction in prices of key vegetables would keep food inflation on a moderating trend. However, edible oil prices would keep a lid on the expected decline in food inflation,” said Paras Jasrai, Senior Economic Analyst at India Ratings and Research.</p>.Bengaluru remains top destination for GCCs: Report.<p>The overall global economic environment remains uncertain, keeping commodity prices volatile. Brent crude prices have been on a rise so far in January 2025, touching a three-month high. “Core inflation is expected to witness some increase, but it would be lower than 1 per cent in the near term,” Jasrai said.</p>.<p>Wholesale core inflation was at a five-month high of 0.7 per cent in December 2024 largely due to a rise in textiles inflation. The textiles inflation increased to a 26-month high of 2.4 per cent.</p>.<p>However, core inflation continues to be low on account of a sustained decline in metal prices. Favorably, only 10 out of the 21 industries within core had a higher inflation in December 2024 compared to the past month.</p>.<p>There was a year-on-year decline in prices of fuel, power and minerals. Fuel and power recorded a contraction in prices to the tune of 3.8 per cent in December, the fifth straight month of decline, while prices for energy and minerals declined by 2.7 per cent year-on-year, registering a decline for the fourth successive month. </p>
<p>New Delhi: The annual wholesale price inflation rose to 2.37 per cent in December from 1.89 per cent recorded in the previous month driven by rise in prices of manufactured products and a low base effect, data released by the <a href="https://www.deccanherald.com/tags/commerce-ministry">Commerce Ministry</a>, on Tuesday, showed.</p>.<p>The wholesale price index (WPI) based inflation stood at 0.86 per cent in December 2023.</p>.<p>After nearly two years of decline, inflation in wholesale non-food articles jumped to 2.5 per cent in December.</p>.<p>Wholesale food inflation eased marginally to 8.89 per cent in December from 8.92 per cent recorded in the previous month. Despite marginal easing, food prices remained the key driver of the inflationary pressure in the country.</p>.<p>Vegetables became costlier by 28.65 per cent in the wholesale market year-on-year. Potato prices almost doubled, with wholesale inflation of the kitchen staple coming in at 93.20 per cent in December. The price of onions was 16.81 per cent higher when compared with the same month last year, while fruits became costlier by 11.16 per cent year-on-year.</p>.<p>“Going forward, a seasonal correction in prices of key vegetables would keep food inflation on a moderating trend. However, edible oil prices would keep a lid on the expected decline in food inflation,” said Paras Jasrai, Senior Economic Analyst at India Ratings and Research.</p>.Bengaluru remains top destination for GCCs: Report.<p>The overall global economic environment remains uncertain, keeping commodity prices volatile. Brent crude prices have been on a rise so far in January 2025, touching a three-month high. “Core inflation is expected to witness some increase, but it would be lower than 1 per cent in the near term,” Jasrai said.</p>.<p>Wholesale core inflation was at a five-month high of 0.7 per cent in December 2024 largely due to a rise in textiles inflation. The textiles inflation increased to a 26-month high of 2.4 per cent.</p>.<p>However, core inflation continues to be low on account of a sustained decline in metal prices. Favorably, only 10 out of the 21 industries within core had a higher inflation in December 2024 compared to the past month.</p>.<p>There was a year-on-year decline in prices of fuel, power and minerals. Fuel and power recorded a contraction in prices to the tune of 3.8 per cent in December, the fifth straight month of decline, while prices for energy and minerals declined by 2.7 per cent year-on-year, registering a decline for the fourth successive month. </p>