Wholesale inflation in the economy, as measured by the Wholesale Price Index (WPI), rose sharply to 2.37% in December 2024, compared to 1.89% in November 2024, according to data released by the Ministry of Commerce and Industry on Tuesday.
Following the Retail Inflation, India’s Wholesale Price Inflation moderated to 1.89 per cent in October from 2.36 per cent in October. The Food Price Index also saw easing to 200.3 from 201.2 in October, showing a decrease of 8.92 per cent.
Significant changes were observed in primary commodities, which increased to 6.02% in December, up from 5.49% in November. Meanwhile, the inflation rate for the Fuel and Power category eased to -3.79% in December from -5.83% in November.On a month-over-month basis, the WPI contracted by 0.38% in December 2024 compared to November 2024. Similarly, the annual rate of inflation for the WPI Food Index decreased slightly, from 8.92% in November to 8.89% in December.
In the primary commodities category, notable month-over-month price increases were recorded for items like onions, potatoes, and fruits. Onion prices surged dramatically to 16.81% in December, up from 2.85% in November. Potato inflation rose to 93.20%, compared to 82.79% in the previous month.
Year-over-year changes in key components—such as primary articles, fuel and power, manufacturing, and the food index—also reflected notable shifts. Detailed breakdowns for these categories are anticipated in the ministry’s complete report.
The rise in wholesale inflation contrasts with the continued slowdown in retail inflation, which has been declining since October 2024. Retail inflation eased to 5.48% in November and further moderated to 5.22% in December.
Retail inflation in India eased to 5.22 per cent in December 2024, the lowest in three months, driven by a decline in food inflation to 8.39 per cent, its lowest in four months. The moderation offers relief after October’s breach of the Reserve Bank of India’s target range, signaling some easing of price pressures.
Wholesale inflation, which tracks price changes at the wholesale level before goods reach consumers, reflects the average price movement in bulk goods, including food, fuel, and manufactured products. Unlike retail inflation, which captures price changes experienced directly by consumers, wholesale inflation provides insights into cost trends affecting producers and distributors.A sharp rise in wholesale prices often signals supply chain disruptions or higher production costs, whereas a decline may indicate reduced demand or improved supply chain stability.
Movement of Wholesale Inflation in FY25
