Wholesale inflation data for December today
Ministry of Commerce and Industry will be announcing the wholesale price index (WPI) or wholesale inflation for the month of December on Monday.
In November, WPI stood at 3.15% as compared to 3.39% in October and -2.04% in November 2015. The official WPI for ‘All Commodities’ for the month of November, 2016 rose by 0.1% to 183.1 (provisional) from 182.9 (provisional) for the previous month.
This time, the wholesale inflation numbers will be crucial as it will give a clear picture of impact of demonetisation, which ended on December 31, on Indian economy.
On November 8, Prime Minister Narendra Modi had announced the ban on high denomination currency which had left the country in cash crisis situation. Following the announcement, the government had given time till end of 2016 to deposit old notes in the banks in order which will help in curbing black money floating in India. A cash crunch ensured that people didn't have enough cash to spend, reining in inflation in November.
According to HSBC report, WPI may lower to 2.9% in December from 3.2% in the preceding month. While, a Reuters poll suggested that WPI is expected to rise in December to 3.5%.