India's December WPI Comes Lower At 3.8%; Sharp Drop In Fuel Rates Help

India's wholesale price index (WPI) for the December month came in weak at 3.8%,, that compares with the 4.64% for November month. There has been seen a marginal increase in food inflation over deflation recorded for the prior month.

Also, the inflation on account of brent crude oil has declined that will impact the core inflation positively. Fuel and power inflation came in lower at 8.38%, just half in comparison to what was recorded in the previous month of 16.28%.

Increase in food inflation is just due to the seasonality and is recorded at 0.07% in comparison to -1.96% in November 2018.

Primary article inflation also surged to 2.28% in comparison to 0.88% for the previous month.

Non-food articles inflation however came in lower at 4.45% vs 6.40% in the month of November.

In the month of April last year, the lower inflation than the current numbers had been recorded at 3.62%.

CPI inflation is due to be announced later during the day and as food inflation has a higher weightage experts estimate it to come in at 2.37% vs 2.33% reported for the previous month.

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