Press Trust of India
New Delhi, Jan 14: For the 14th month in a row, wholesale prices fell in December but the rate of decline at 0.73 per cent was the slowest in last one year as food prices shot up, indicating return of inflationary pressures ahead of RBI’s monetary policy review. The Wholesale Price Index based inflation, which has remained in the negative zone since November 2014, has inched up in the last four months. It was (-)1.99 per cent in November. In December 2014, however, it was (-)0.50 per cent. Food inflation shot up to 8.17 per cent in December as against 5.20 per cent in the previous month. Inflation in pulses and onion was 55.64 per cent and 25.98 per cent respectively. The rate of price rise in case of vegetables was 20.56 per cent during December and for fruits it was 0.76 per cent.
Industry urges RBI to cut rates
With inflation remaining in the negative territory for the 14th straight month in December, India Inc Thursday said the trend indicates weak demand, nudging Reserve Bank to cut the benchmark rate to aid industrial recovery and boost economic growth. Deflationary trend eased in December with WPI inflation moving up to (-) 0.73 per cent as food articles, mainly vegetables, turned costlier. “The continuation of the deflationary trend is an indication of weak demand, besides being the spillover effect of lower oil and commodity prices. The latest data on industrial production once again highlights the precarious nature of recovery in this sector.