The annual inflation rate in India, based on the Wholesale Price Index (WPI), has slightly increased to 2.37% for December 2024. This represents a rise compared to the same month in the previous year. The figures were released by the Ministry of Commerce and Industry on Tuesday. The increase in inflation is mainly driven by the higher prices of food items, the manufacturing of food products, textiles and other non-food goods.
WPI Shows a Decline in Monthly Comparison
When comparing the WPI of December 2024 to November 2024, the data reveals a decrease of 0.38%. This indicates that, despite the annual increase, the price index slightly dropped on a month-to-month basis. The index for primary goods, which include raw materials and food items, saw a decrease of 2.07% in December compared to November. Notably, food prices dropped by 3.08%, and the prices of crude petroleum and natural gas fell by 2.87%.
Fuel, Manufactured Products and Food Prices in December
In terms of fuel and power, the index rose by 1.90% in December 2024. The price of electricity surged by 8.81%, and coal saw a slight increase of 0.07%. However, the cost of mineral oils decreased by 0.06%.
The Manufactured Products index, which makes up over 64% of the WPI, remained unchanged from November. Among the 22 groups of manufactured products, half saw price increases, while the other half experienced decreases. Groups like textiles, fabricated metal products, and motor vehicles saw price hikes, while products like basic metals, food items, and furniture saw price reductions.
The Food Index, which is a combined measure of food articles and processed food products, showed a minor decrease from 8.92% in November to 8.89% in December. Food items account for 24.38% of the overall WPI, making their impact on inflation significant.
Overall, the WPI data for December 2024 presents a mixed picture, with inflation rising on an annual basis, but a slight month-to-month drop in prices for several categories.