Wholesale inflation rises to 3.39% in December

Wholesale Price index (WPI) or Wholesale inflation rose to 3.39% (provisional) for the month of December, 2016 (over December, 2015) as compared to 3.15% (provisional) for the previous month and -1.06% during the corresponding month of the previous year, said Ministry of Commerce and Industry.

Build up inflation rate in the financial year so far was 4.28% compared to a build up rate of 0.40% in the corresponding period of the previous year. Wholesale Price Index for ‘All Commodities’ for the month of December, 2016 declined by 0.2% to 182.8 (provisional) from 183.1 (provisional) for the previous month.

For the month of October, 2016, the final Wholesale Price Index for ‘All Commodities’ stood at 183.6 as compared to 182.9 (provisional) and annual rate of inflation based on final index stood at 3.79% as compared to 3.39% (provisional) respectively as reported on November 14, 2016.

The index for Fuel & Power group rose by 0.7% to 192.1 (provisional) from 190.7  (provisional) for the previous month. While, the The index for manufactured products rose by 0.1% to 158.0 (provisional) from 157.9 (provisional) for the previous month. 

This time, the wholesale inflation numbers were crucial as it will be giving a clear picture of impact of demonetisation, which ended on December 31, on Indian economy.

source: tradingeconomics.com

The index for primary articles declined by 1.2% to 256.3 (provisional) from 259.4 (provisional) for the previous month.