WPI inflation dips to 5-months low in December 2013

Core inflation rises slightly up to 2.7% from 2.6%

India's Wholesale Price Index (WPI) based inflation dipped sharply to 5-months low of 6.2% in December 2013 from 14-months high of 7.5% in November 2013, mainly driven down by vegetables. The inflation for primary articles dipped from 34-months high of 15.9% in November 2013 to 10.8% in December 2013, while the inflation for fuel and power group was nearly steady at 11.0% in December 2013. The inflation for manufactured products also flat at 2.6% in December 2013.

As per the major commodity group wise inflation, the decline in inflation for vegetables, fruits, fish, cotton, oilseeds, crude oil, edible oils, tea & coffee products led the dip in inflation in December 2013.

On the other hand, the inflation for milk, flowers, electricity, sugar and basic metals increased in December 2013 from November 2013 level.

The inflation for food items (food articles and food products) declined from 13.8% in November 2013 to 9.5% in December 2013. Meanwhile, the inflation for non-food items (all commodities excluding food items) also eased to 4.9% in December 2013 from 5.1% in November 2013.

The core inflation (manufactured products excluding foods products) rose slightly to 2.7% in December 2013 from 2.6% in November 2013.

As per the revised price index data, the inflation figure for October 2013 has been revised upwards to 7.24% compared to 7.00% reported earlier. Meanwhile, the inflation figure for November 2013 has been retained unchanged at 7.52%.

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