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India's Wholesale Inflation Turns Positive at 0.83% in December, Topping Estimates

Analysts attribute the upside surprise to base effects plus firmer food and commodity costs, signaling a turn for producer pricing power.

Overview

  • Official data confirm a return to inflation in December after November’s 0.32% year-on-year decline at the wholesale level.
  • The reading beat market expectations near 0.30%, pointing to a quicker easing of deflationary pressure.
  • The Commerce and Industry Ministry credited higher prices in other manufacturing, minerals, machinery and equipment, food products, and textiles.
  • Analysts highlighted base effects together with stronger food and global commodity prices, with fuel and power remaining volatile.
  • Economists say wholesale deflation has likely bottomed and note improving producer pricing power, while monetary policy remains primarily guided by CPI.