New Delhi: India’s wholesale inflation has skyrocketed to 2.59 per cent in December as against 0.58 per cent in November due to increase in prices of food articles like onion and potato, government data showed on Tuesday. A year ago in December 2018, annual inflation, based on monthly wholesale price index (WPI) was at 3.46 per cent. Also Read - RBI Keeps Repo Rate Unchanged At 4 Percent, Revises Real GDP Growth Projection For 2020-21
“Build up inflation rate in the financial year so far was 2.42 per cent compared to a build up rate of 2.92 per cent in the corresponding period of the previous year,” the Ministry of Commerce and Industry said in its review of ‘Index Numbers of Wholesale Price in India’ for December. Also Read - Retail Inflation in September Jumps to 7.34% Led by Soaring Vegetables Prices; Highest Since January
The rate of price rise for food articles rose to 13.12 per cent during December as against 11 per cent a month earlier, while for non-food articles it rose nearly four-fold to 7.72 per cent from 1.93 per cent in November, showed the data released by the Ministry of Commerce and Industry on Tuesday.
Among food articles, vegetable prices surged by 69.69 per cent mainly on account of onion, which witnessed 455.83 per cent jump in prices, followed by potato at 44.97 per cent.
The WPI data comes a day after the National Statistical Office (NSO) data showed that retail inflation rose to about five-and-half year high of 7.35 per cent in December 2019. Rising retail inflation to its highest in more than five years in December, has breached the Reserve Bank of India’s medium-term target of 4 per cent for a third straight month.