In December 2024, the annual inflation rate, as measured by the all-India Wholesale Price Index (WPI), stood at a provisional 2.37 percent compared to the same month in 2023. This increase was driven primarily by rising prices in food articles, food product manufacturing, textiles, non-food articles, and other manufacturing categories.
Month-on-month, however, the WPI experienced a decline of 0.38 percent from November 2024 to December 2024. Examining the major sectors, the Primary Articles group saw a notable decrease of 2.07 percent in its index, dropping from 197.9 in November to 193.8 in December. Within this group, prices of food articles and crude petroleum and natural gas fell by 3.08 percent and 2.87 percent, respectively, while non-food articles and minerals experienced modest price increases of 2.53 percent and 0.48 percent.
In contrast, the Fuel & Power category recorded a rise in its index, increasing by 1.90 percent from November’s 147.1 to 149.9 in December. Electricity prices saw a significant jump of 8.81 percent, and coal prices inched up by 0.07 percent. Meanwhile, mineral oil prices showed a marginal decline of 0.06 percent.
The Manufactured Products category, which carries the largest weight in the WPI, remained unchanged at 143.0 in December. However, the underlying details reveal a mixed picture: out of 22 sub-categories, prices rose in 11, fell in 9, and remained static in 2. Noteworthy increases were observed in textiles, fabricated metal products, motor vehicles, and chemical products, while basic metals, food products, machinery, and furniture registered declines.
The Food Index, encompassing food articles from both the primary and manufactured product groups, dropped from 200.3 in November to 195.9 in December. The annual inflation rate for the Food Index eased slightly, moving from 8.92 percent in November to 8.89 percent in December, reflecting the overall moderation in food prices.


