After retail inflation, the rate of wholesale inflation has risen slightly to 0.11 per cent in December against 0 per cent in November and against 6.4 per cent last December. Rate of inflation indicates change in price rise.
One of the key reasons for the rise is the rate of food inflation which recorded 5.2 per cent against 0.63 per cent in November. In fact, the rate of food inflation is highest since the month of August.
Meanwhile, continuous fall in crude prices have effect on fuel inflation which is still in the negative zone.
The rate of inflation for fuel is (-) 7.82 per cent against (-) 4.91 per cent. Similarly, the rate of inflation for manufactured products has also gone down as it was 1.57 per cent in December against 2.04 per cent in November.
It may be noted that retail inflation for December was 5 per cent in comparison to 4.38 per cent for November.