India's annual Wholesale Price Index (WPI) inflation for the month of December 2022 eased to 4.95 per cent, at a 22-month low, mainly due to a fall in prices of food articles and crude petroleum, the government data showed on Monday.
The WPI-based inflation was 5.85 per cent in November 2022 and 14.27 per cent in December 2021.
“The decline in the rate of inflation in December 2022 is primarily contributed by fall in prices of food articles, mineral oils, crude petroleum & natural gas, food products, textiles and chemicals & chemical products," the commerce and industry ministry said in a statement.
The WPI Inflation slipped below 5 per cent for the first time since February 2021, when it was at 4.83 per cent.
Inflation in food articles was (-)1.25 per cent, while in fuel and power it was 18.09 per cent during December 2022. Inflation in manufactured products was 3.37 per cent during the month under review. The food index rose 0.65 per cent in December, with prices of vegetables falling nearly 36 per cent year-on-year. In November, the food index rose 2.17 per cent.
Last week, data showed that India's retail inflation rate eased down from the previous month, staying within the Reserve Bank of India's (RBI) comfort range of 2-6 per cent for a second month.
The RBI mainly looks at retail inflation to frame monetary policy. The Consumer Price Index (CPI)-based inflation rate eased to 5.72 per cent in December. It was 5.88 per cent in November, and 6.77 per cent in October 2022.