WPI measures the change in prices of goods sold and traded in bulk by wholesale businesses with other companies.
Representation image [Photo Source: IANS]
The annual rate of inflation based on the all India Wholesale Price Index (WPI) for December rose to 0.73 per cent, a nine-month high, according to government data on Monday.
Positive rate of inflation in December 2023 is primarily due to increase in prices of food articles, machinery & equipment, manufacturing, transport equipment and computer, electronics and optical products , the Ministry of Commerce & Industry said.
WPI measures the change in prices of goods sold and traded in bulk by wholesale businesses with other companies. Unlike the CPI which tracks prices of goods and services purchased by consumers, WPI tracks factory gate prices and retail prices.
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Notably, the core inflation rate for December came at -0.6 per cent against -0.4 per cent in the previous month.
The Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group has decreased to 179.9 in December 2023 from 183.1 in November 2023 . The rate of inflation based on WPI Food Index increased to 5.39 per cent in December 2023 from 4.69 per cent in November 2023.
As per the data for December WPI, the prices of minerals stood at -1.91 per cent, food articles at -2.30 per cent , crude petroleum and natural gas at -4.28 per cent , and non-food articles at -0.18 per cent compared to November 2023.
The price of mineral oil (-1.54 per cent ) declined, whereas electricity (1.34 per cent) increased in December month-on-month.
Machinery and equipment, other manufacturing, pharmaceuticals, medicinal chemical & botanical products, electrical equipment, motor vehicles, trailers and semi-trailers, showed month-over-month increase in prices.
A decrease in prices was seen in December as compared to November, in the manufacture of basic metals, food products, textiles, chemical and chemical products, fabricated metal products, except machinery and equipment.
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