Inflation in India fell in December to 2-year low
2023.01.16 08:35
Inflation in India fell in December to 2-year low
By Kristina Sobol
Budrigannews.com – Thanks to a sharp drop in vegetable prices, India’s annual wholesale price inflation (WPI) fell to its lowest level in nearly two years.
WPI inflation for December was 4.95 percent year-over-year, according to government data on Monday. This was lower than the 5.60 percent and 5.85 percent predicted by Reuters for the previous month.
In December, the food index increased by 0.65 percent, and vegetable prices decreased by nearly 36% year-over-year. The food index rose 2.17 percent in November. From 10.71 percent in November, manufactured product inflation decreased to 3.37 percent in December.
“Global commodity prices cooling is reflected in low manufacturing inflation. According to Bank of Baroda economist Madan Sabnavis, “this will continue as the world moves further into recession.”
Refinitiv data indicate that December WPI inflation was at its lowest level since February 2021.
For the second month in a row, the country’s annual retail inflation dipped slightly last week, remaining within the comfort zone set by the central bank.
