Crisil inflation tracker: Headline WPI trips on food, core intact

In the first three quarters of this fiscal year, WPI inflation has averaged 2.9 per cent, compared with 0.7 per cent in the corresponding period a year ago

Inflation based on the Wholesale Price Index (WPI) eased to 3.6 per cent in December, reversing a four-month run-up. In November, WPI inflation was at 3.9 per cent. The dip was led by an easing in food inflation, and mildly lower core inflation — the latter reflecting weak pricing power of manufacturers. Fuel inflation surged higher, while manufactured products’ inflation stayed unchanged for the third month in a row.

Curiously, the two inflation measures — WPI and Consumer Price Index (CPI) — saw a divergence in December. CPI inflation rose to 5.2 per cent, from 4.9 per cent in November, driven