WPI inches higher on costly fuel prices

WPI inches higher on costly fuel prices

India’s December wholesale-based inflation edged up marginally to 3.39% on the back of increase in prices of fuel, power and manufactured products.

However, food prices continued to remain on a down trend as demonetisation dragged down rates of perishable food items. WPI was 3.15% in November.

Price rise in vegetables printed at (-)33.11% in December, prices of onions fell (-)37.20%. Prices of fruits, potato and pulses grew on a slower clip leading to a contraction in inflation in food basket of (-)0.70%.

Price rise in fuel and power segment rose 8.65% in December. While the prices of diesel rose more than 20%, petrol became dearer by over 8%.

The WPI data comes on the back of consumer price inflation easing to 3.41% in December from 3.63% in November.

Reacting to the WPI data, Ficci said, “broadly prices remain benign which bodes well for the economy. Even though upside risks have been indicated by RBI in its last monetary policy assessment, prices are expected to follow RBI’s indicative trajectory this year, “At this juncture, it remains critical to further growth considerations.

The latest index of industrial production numbers have reported an improvement; but this has come on the back of a favourable base. For a sustained turnaround, we will need to keep the focus on reforms. The forthcoming Union Budget is being looked forward to with great anticipation and should focus on driving consumption, investment and job creation”.
DH News Service

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