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WEB India Inflation Rate Hits 4-Month High
Inflation Rises to 5.69% in December 2023
India's annual inflation rate inched up to 5.69% in December 2023, a 4-month high, according to the National Statistics Office (NSO). This increase, from 5.55% in November, falls slightly below market expectations.
WEB CPI as an Inflation Indicator
The Wholesale Price Index (WPI) is a key macroeconomic indicator of inflation and is closely monitored by governments and central banks. It measures the changes in prices of goods sold in wholesale markets and serves as a gauge of overall inflation in the economy.
WPI Declines in February 2024
In a contrasting trend, the NSO reported a decline in India's retail inflation rate to 5.09% in February 2024. This drop suggests that consumer price inflation may be easing, despite the recent rise in WPI.
CPI Inflation in India in 2022
According to the NSO, consumer price inflation in India experienced three distinct phases in 2022: a surge in the first half, a moderation in the second half, and a slight uptick towards the end of the year.
Conclusion
While the WPI has risen slightly in recent months, it is important to monitor both the WPI and retail inflation rates to assess the overall inflationary trend in India. The government and central bank will likely consider these indicators in their future monetary and fiscal policy decisions.
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