Inflation Dynamics: Wholesale Prices Surge Amid Mixed Trends

Wholesale price inflation rose to 2.37% in December 2024, driven by manufactured products, despite a decrease in food item prices. The Wholesale Price Index (WPI) inflation was 1.89% in November 2024. Retail inflation cooled to a 4-month low of 5.22% in December, mainly due to easing food prices.

In December 2024, wholesale price inflation surged to 2.37%, predominantly influenced by a spike in manufactured products' prices, according to government data released on Tuesday. Prices of food items, however, showed a declining trend.

The Wholesale Price Index (WPI) inflation rate increased from November's 1.89% and contrasted with the previous year's December rate of 0.86%. Meanwhile, inflation in food items decreased slightly to 8.47% in December, down from 8.63% in November.

Notably, the inflation rate for potatoes remained alarmingly high at 93.20%, while onions also saw a significant rise to 16.81% in December. The fuel and power sector experienced a deflation of 3.79%, and retail inflation cooled to a 4-month low of 5.22% due to easing food costs.

(With inputs from agencies.)