WPI inflation eases in sync with retail, but core spikes in December

Softens to four-month low of 1.22% in December from 1.55% in November as food items enter deflationary zone; core inflation at 2-year high of 4.2%

In tandem with its retail counterpart, wholesale inflation rate softened to a four-month low of 1.22 per cent in December from 1.55 per cent in November as food items entered the deflationary zone. 

However, core inflation (which does not include food and fuel items) rose to a two-year high of 4.2 per cent on metal and commodity prices that may not allow the  monetary policy committee of the Reserve Bank of India to go for any further rate cut in February. This was despite consumer price inflation rate declining to a 15-month low of 4.6 per cent. 

In that sense,