WPI falls to 8-month low of 3.80% in December, on softening of fuel and food prices

Inflation based on wholesale prices fell to a 8-month low of 3.80 per cent in December 2018, on softening prices of fuel and some food items. The Wholesale Price Index (WPI)-based inflation stood at 4.64 per cent in November, 2018, and 3.58 per cent in December 2017.

According to the government data released today, deflation in food articles stood at 0.07 per cent in December. Vegetables too saw deflation at 17.55 per cent.  Inflation in the fuel and power basket in December slumped to 8.38 per cent on account of lowering of prices of petrol and diesel.

The 3.80 per cent inflation is the lowest in 8 months, and a lower inflation than this was last seen in April at 3.62 per cent. Data for retail or consumer price index-based inflation would be released later in the day. The Reserve Bank of India mainly takes into account retail inflation data while formulating monetary policy.

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