Wholesale inflation eased to 4.95 percent in December: 22-month low

- Inflation came down as food items including vegetables became cheaper

- RBI may not hike interest rates even if wholesale inflation falls after retail in December

- Exports fell 12.2 percent to $34.48 billion in December : Imports fell 3.5 percent to $58.24 billion : Trade deficit widened to $23.76 billion

New Delhi: India has seen a decline in wholesale price-based inflation. Wholesale price index (WPI)-based inflation stood at 4.95 percent in December, a 22-month low. This inflation was 5.85 percent in November.

Wholesale price-based inflation declined in December due to food inflation and falling crude oil prices. According to data released by the government, wholesale inflation was 5.85 percent in November, 2022 and 14.27 percent in December, 2021.

The Reserve Bank of India (RBI) is likely not to raise interest rates in February as retail inflation also declined in December.

In December, the inflation of food grains has decreased by 1.25 percent. Vegetable prices have decreased by 35.95 percent while onion prices have decreased by 25.97 percent. Earlier in February, 2021, wholesale inflation was 4.83 percent.

The Ministry of Commerce and Industry has said in a statement that the main reason for the decline in inflation in December, 2022 is the fall in the prices of food items, mineral oil, crude oil, natural gas, food products, textiles and chemical and chemical products. It is worth mentioning that in December, 2022, the retail inflation decreased to 5.72 percent.

On the other hand, according to the figures issued by the government, exports have decreased by 12.2 percent to 34.84 billion dollars in December, 2022. The trade deficit widened to $23.76 billion in December, 2022 due to declining exports.

In December, 2022, imports decreased by 3.5 percent to 58.24 billion dollars. Which was 60.33 billion dollars in December, 2021. In December, 2021, exports were 39.27 billion dollars and trade deficit was 21.06 billion dollars.

During the nine-month period from April, 2022 to December, 2022, exports increased by 9 percent to $218.94 billion and imports increased by 24.96 percent to $551.7 billion. In the same period, the trade deficit was 218.94 billion dollars. Which was 136.45 billion dollars in the same period last year.