Decrease in wholesale price of food items in December by 3.58%

Due to the decrease in the price of food items, the rate of inflation declined. However, during this time the fuel price increase was recorded. According to official data, the food inflation rate was 4.72 percent in December, which was 6.06 percent in November 2017.

New Delhi: There is news of some relief from the wholesale inflation front. Inflation based on wholesale price index declined to 3.58 percent in December 2017. The wholesale inflation was 3.93 per cent in November 2017 and 2.10 per cent in December, one year ago. Meanwhile, the October inflation figure revised to 3.68 percent. Before this, the figure was 3.59 percent in provisional estimates.

Due to the decrease in the price of food items, the rate of inflation declined. However, during this time the fuel price increase was recorded. According to official data, the food inflation rate was 4.72 percent in December, which was 6.06 percent in November 2017.

The inflation rate in the
vegetables was somewhat moderate in the inflation of vegetables. In December this year, the inflation rate was 56.46 per cent, which was 59.80 per cent last month. However, wholesale prices of onion increased by 197.05 percent in December. 
Prices of protein-rich foods like egg, meat and fish declined to 1.67 percent in December. However, in case of fruits, it increased to 11.99%.

Inflation in
fuel and power segment The wholesale inflation in fuel and power segment increased to 9.16 percent in December, but in terms of manufacturing products it was 2.61 percent.

According to figures released by the retail inflation rate or retail inflation rate last week, retail inflation rose to 5.21 percent in December, after rising prices of food items, especially vegetables, which is above the satisfactory level of the Reserve Bank. While keeping the decision on the main policy rate, the Reserve Bank keeps retail inflation in mind.

The Reserve Bank kept key policy rates in monetary policy review in December. For the rest of the current financial year, the retail inflation estimates increased from 4.3 to 4.7 percent. The reason for this is the rise in crude oil prices and recommendations of the Seventh Pay Commission on global level.