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Rising petrol, diesel prices push WPI inflation to 3.39 per cent

Petrol and diesel prices were hiked twice and once, respectively, in December after international crude oil prices saw a surge since OPEC reached an agreement to cut output.

By: PTI | New Delhi | Updated: January 17, 2017 10:11 am
wpi inflation, petrol price hike, petrol price, diesel price hike, diesel price, petrol price today, petrol price economy, inflation india, india economy, india news, business news Petrol pumps across the country protested, deciding not to accept plastic money from customers for fuel purchases.

Rising prices of petrol and diesel fuelled WPI inflation to 3.39 per cent in December 2016, reversing the declining trend and neutralising the impact of softening prices of vegetables. Also, hardening prices of manufactured items during the month may refrain RBI from cutting rates in its policy review on February 8.

The wholesale price index-based inflation, reflecting the annual rate of price rise, in November stood at 3.15 per cent. In December 2015, the print was (-)1.06 per cent. WPI inflation in vegetables, at (-)33.11 per cent in December, saw deflationary pressure for the fourth consecutive month. This was helped by a substantial price fall in onions, which stood at (-)37.20 per cent.

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While the prices of diesel shot up by 20.25 per cent, petrol became dearer by 8.52 per cent. The overall inflation index of fuel and power segment registered an increase of 8.65 per cent in December. Besides fuel items, sugar, potato, pulses and wheat became expensive during the month.

Overall, the food basket witnessed contraction, with inflation at (-)0.70 per cent in December as against 1.54 per cent in November. Experts said that inflationary pressures on petrol and diesel have arisen following firming up of crude prices in global markets.

“Steady and continuous rise in prices of crude oil and strengthening of the dollar for the last one month may have negative impact on input prices for the industry, which has already started the pressure on its profitability owing to low demand,” Assocham said.

The fact that the upward pressure on wholesale prices has come about despite a sharp drop in prices of vegetables shows how WPI may gather pace further once the seasonal price of advantage of vegetables goes away, it added.

Petrol and diesel prices were hiked twice and once, respectively, in December after international crude oil prices saw a surge since OPEC reached an agreement to cut output.

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  1. B
    Big b
    Jan 16, 2017 at 2:02 pm
    Are you kidding? inflation is more than 7%
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    Reply
    1. S
      sunny
      Jan 16, 2017 at 6:11 pm
      ache din ah e but only for millionaires who can become billionaires and BJP as involved local people in mandir masjid , beef politics , vande matram , article 370, singing national anthem ,caste and religion politics
      (0)(0)
      Reply
      1. S
        sunny
        Jan 16, 2017 at 6:15 pm
        how long modi is going to fool with is emotional speeches ache din only for millionnaries who can became billionaries and for locals fight for beef politics , article 370 , saying vande matram ,national anthem in cinema house
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        1. P
          Prasad
          Jan 16, 2017 at 3:04 pm
          Acche Din after demonetization.lt;br/gt;lt;br/gt;More to follow...rising unemployment (of day labours due to cash shortage), rising inflation (already beginning) and rising gold/Silver prices (as people flee from paper money fraud to real money).
          (0)(0)
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          1. M
            Monalisa Dutta
            Jan 16, 2017 at 1:16 pm
            This season make fun with the people who love to freak out and enjoy with the near ones. This season wake up in the misty aroma of the flowers and make your day lively and soothing. The flowers comprises of various variants like Roses, Tulips, Orchids, Carnations, Gerberas etc which fills every heart with awesome fun and so, people Send Flowers to Chennai.
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