<B>CRISIL core inflation tracker:</B> Many moving parts in WPI

Food inflation continued to dip for the 5th consecutive month on fresh supplies entering the market

The Wholesale Price Index (WPI)-based inflation took a U-turn in December, rising to 3.4 per cent from 3.2 per cent in November. Food inflation continued to dip for the fifth consecutive month on fresh farm supplies entering the market, and given healthy rabi crop prospects. But higher global oil and metal prices and weaker rupee pulled up manufacturing and fuel inflation, which together comprise 80 per cent of the index. The two core inflation measures, too, displayed divergent trends. Non-food manufacturing inflation (which includes base metals) rose to 2.2 per cent in December, from 1.6 per cent in November, while