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WPI inflation eases to 3.58% in December from 3.93% in November 2017

WPI-based inflation was at an eight-month high in November 2017

Agencies  |  New Delhi 

fruit and vegetables market, Inflation

based on wholesale prices eased to 3.58 per cent in December 2017 as prices of food articles declined even as fuel cost witnessed a surge.

Calculated on the basis of (WPI), the was 3.93 per cent in November 2017 and 2.10 per cent in December 2016.

As per government data released today, on food articles slowed to 4.72 per cent in December, from 6.06 per cent in November 2017.

Vegetables too witnessed some softening with annual at 56.46 per cent in December as against 59.80 per cent in the previous month.

Kitchen staple onion witnessed a whopping 197.05 per cent price rise in December.

in protein rich eggs, meat and fish cooled to 1.67 per cent in December, while that in fruits spiked to 11.99 per cent.

In the fuel and power segment, wholesale rose to 9.16 per cent in December, while it was 2.61 per cent for manufactured items.

Data released last week showed that retail breached the RBI's comfort level to touch 5.21 per cent in December on rise in prices of food items, especially vegetables.

The Reserve Bank takes into account retail while deciding on key policy rates.

In its last policy review in December, the RBI had kept key interest rate unchanged. It raised forecast for remainder of the current financial year to 4.3-4.7 per cent, on account of global crude oil prices and implementation of the 7th Pay Commission recommendations.

Meanwhile, for October has been revised upwards to 3.68 per cent from the provisional estimate of 3.59 per cent released earlier.

First Published: Mon, January 15 2018. 12:27 IST