According to the data release by Ministry of commerce and industry, Wholesale price-based inflation (WPI) eased to a three-month low of 3.58 per cent in December 2017.
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WPI inflation eased to a three-month low as food prices softened, prompting the industry to seek measures in the budget to strengthen agriculture supply chain.
Wholesale price index (WPI) based inflation was 3.93 per cent in November 2017 and 2.10 per cent in December 2016.
Inflation on food articles slowed to 4.72 per cent in December, from 6.06 per cent in November 2017.
In fuel and power segment, inflation rose to 9.16 per cent in December against 8.82 per cent in the previous month.
The ease in inflation prompted India Inc. to demand lowering of interest rates.
Industry chamber FICCI said continued efforts of the government to strengthen food supply mechanism can help in bringing down food inflation further. It further added that they hope to see the inclusion of petrol and diesel under GST in coming months, which should also help in lowering the pressures of fuel inflation.
Retail inflation (CPI) breached the RBI’s comfort level to touch 5.21 per cent in December on the rise in prices of food items, especially vegetables, housing and personal care items.
In its last policy review in December, the RBI had kept key interest rate unchanged. It raised inflation forecast for remainder of the current financial year to 4.3-4.7 per cent, on account of global crude oil prices and implementation of the 7th Pay Commission recommendations.
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