
Key Highlights:
- The annual rate of inflation based on the all-India Wholesale Price Index (WPI) stood at 2.37% in December 2024, reflecting a moderate increase compared to 1.89% in November 2024.
- The overall WPI declined marginally by 0.38% month-over-month (MoM), indicating slight deflationary trends in select categories.
Detailed Insights:
Primary Articles (Weight: 22.62%)
- The index for primary articles dropped by 2.07% MoM, primarily driven by a 3.08% decline in food articles.
- Notable movements:
- Vegetables saw a sharp decline of 13.20% MoM, while fruits decreased by 5.11% MoM.
- Non-food articles rose 2.53% MoM, supported by gains in minerals.
Fuel and Power (Weight: 13.15%)
- The index increased by 1.90% MoM, reversing the previous month’s decline.
- Electricity prices surged by 8.81%, while coal remained largely stable.
Manufactured Products (Weight: 64.23%)
- The index remained unchanged at 143.0, with mixed movements across categories.
- Textile manufacturing and fabricated metal products saw modest price increases.
- Food manufacturing showed a slight decline of 0.34% MoM.
Food Index (Weight: 24.38%)
- The food index declined by 2.20% MoM, reflecting reduced prices in vegetables and select food products.
- Potatoes saw a notable decline of 4.60% MoM, while onions dropped by 17.92% MoM.
Year-Over-Year Analysis:
- Primary Articles: Inflation for December 2024 was recorded at 6.02% YoY, slightly down from 8.26% in October 2024.
- Fuel and Power: Continued deflationary trends with a 3.79% YoY decrease, though less pronounced compared to November’s 5.83% decline.
- Manufactured Products: Inflation rose to 2.14% YoY, driven by categories like food products and non-metallic minerals.
Observations:
- Vegetables: While annual inflation remains high at 28.65% YoY, the MoM decrease signals easing pressures.
- Coal and Electricity: Prices in these sectors drove the upward momentum in the fuel and power category.
- Manufactured Goods: A stable trend with minor shifts in subcategories indicates steady industrial activity.
The Ministry of Commerce & Industry continues to monitor these trends, aiming to strike a balance between domestic supply stability and inflation management. The next update on January 2025 figures is scheduled for February 14, 2025.