India's wholesale inflation eased from its record high as a fall in prices of manufactured products, fuel and power offset costlier vegetables.
Inflation, as measured by the Wholesale Price Index, stood at 13.56% in December against 14.23% in November, the highest reading since 1991.
The gauge declined 0.35% over the previous month in December, according to data released by the Ministry of Commerce and Industry on Friday.
Retail inflation stood at 5.59% in December, compared with 4.91% in November, according to data released by the Ministry of Statistics and Program Implementation on Wednesday.
WPI inflation printed in double digits for the ninth consecutive month, easing only modestly in December 2021 from November's high, with a jump in primary food and non-food inflation absorbing a part of the correction in other items, Aditi Nayar, chief economist at ICRA said.
Annual inflation for minerals, and crude and natural gas decelerated appreciably in December 2021 reflecting the impact of the Omicron variant on global commodity prices, she said.
Core-WPI inflation easing to a six-month low of 11.0% in December, according to ICRA.
WPI Inflation Internals (Year-On-Year)
Primary food inflation spiked to an unpleasant 23-month high of 9.6% in December 2021, reflecting the unfavourable base particularly for vegetables, Nayar said.
Inflation in manufactured products—the largest component of the index—stood at 10.62% compared with 11.92% in November.
Year-on-year, primary articles inflation stood at 13.4% compared with 10.34% in the previous month.
Inflation in food articles was at 9.56% against 4.9% in the previous month.
Vegetables inflation stood at 31.56% compared with 3.9% in November.
Inflation in non-food articles was at 19% against 13.8% in November.
Fuel and power inflation stood at 32.3% against 39.8% in November.
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