A sharp rise in food prices pushed the wholesale price index (WPI)-based inflation to a nine-month high of 0.73 per cent in December 2023. The WPI inflation was in the negative zone from April to October and had turned positive in November at 0.26 per cent. In December 2022, it was 5.02 per cent.

“The positive rate of inflation in December 2023 is primarily due to an increase in prices of food articles, machinery and equipment, other manufacturing, other transport equipment and computer, electronics and optical products,” the commerce and industry ministry said.

The last high level of WPI inflation was recorded in March 2023, when it was 1.41 per cent. In December, food inflation rose to 9.38 per cent from 8.18 per cent in November.

Rating agency Icra said the uptick in WPI inflation was led by items pertaining to fuel, food and crude, even as manufactured non-food items remained in deflationary zone for the 10th straight month.

Looking ahead, the early data for January 2024 depicts a sequential fall in domestic prices of most food items as well as a softening in global commodity prices.