Inflation may rise in December: Basu

Inflation may rise in December: Basu

New Delhi: The wholesale price inflation may snap three-month decline and rise in December from 7.48% in November before coming down in January.

Inflation is likely to rise in December, official sources said here.

While not commenting on the likely figures in December, a top advisor in the finance ministry said inflation is likely to ease in January, not only from the figures of December but also November.

“The next reduction could happen with the January figure when I would expect another decline in inflation (from November)," chief economic advisor Kaushik Basu said on the sidelines of TIE Entrepreneurial Summit.

He, however, declined to comment on onion prices which touched Rs70 a kg in retail markets.

Wholesale price inflation declined to 7.48% in November from 8.58% in October, mainly boosted by lowering of pressure on certain food items.

This was the fourth consecutive month when the overall wholesale price inflation has been in the single digit. It had remained over 10% for six-month till July.

The retail price inflation for items consumed by agricultural and rural labourers also declined to 7.14 and 6.95%, respectively in November.

However, wholesale price food inflation rose to 9.46% for the week ended 4 December on account of higher prices of rice, vegetables, milk and fruits. It stood at 8.60% in the previous week.