Wholesale inflation eases to 3-month low of 3.58%

Wholesale inflation eases to 3-month low of 3.58%

Context

Wholesale price-based inflation (WPI) has cooled in December, 2017 to a three-month low of 3.58% thanks to the decline in prices of food items, according to data released on Monday by the Commerce and Industry Ministry.

India Inc demands rate cut; wants petrol, diesel under GST

• In November, the annual rate of inflation based on monthly WPI, was 3.93% (provisional), while in December 2016 it was 2.1%
• Inflation in food articles eased to 4.72% in December 2017 from 6.06% in November 2017.
• Lowering of repo rate in the upcoming monetary policy is critical to boost investments and build growth momentum at this juncture
• Measures in the Union Budget to strengthen the agriculture supply chain for effective management of food prices, as well as inclusion of petrol and diesel under the Goods and Services Tax regime to help lower the pressures of fuel inflation.

Consumer Price Index

Consumer price index -based inflation had surged to a 17-month high of 5.2% in December due to increased inflation in food, housing and personal care items.