The wholesale price-based inflation moderated to 1.22 pc in December as prices of kitchen staples onion and potato eased, as per agovernment data released on Thursday.

The Wholesale Price Index (WPI) inflation was 1.55 pc in November 2020, and 2.76  pc in December 2019. The rate of price rise on wholesale basis in the vegetables basket declined to (- ) 13.2  pc in December, as against 12.24  pc inflation in the preceding month.

The data showed onion prices contracted by 54.69 pc in December, as against a decline of 7.58 pc in November. The inflation in potato eased to 37.75 pc in December from 115.12 pc in November. According to the data, rate of inflation in cereals, paddy, wheat and pulses , also eased in December over the previous month. The wholesale prices of fruits were however higher in December compared to November.

While inflation in food prices eased, the rate of price rise in manufactured goods rose to 4.24  pc in December. It was 2.97  pc in November. Manufactured products, include food products, beverages, textiles, chemicals, pharmaceuticals and cement. The WPI-based inflation in fuel and power segment too increased marginally during the month under review. It is to be noted that retail inflation too had dropped sharply to 4.59  pc in December, mainly due to declining food prices.

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