In a statement issued by the Ministry of Commerce and Industry, the rate of inflation has decreased at the end of last year i.e. December 2022 mainly due to decline in prices of food items, mineral oil, crude oil and natural gas, food products, textiles and chemicals and chemical products. Earlier, the retail inflation rate also fell in December.
Quarterly Inflation Rate
For the first time since February 2021, the wholesale inflation rate has come down to 5 percent. The wholesale inflation rate was 4.83 percent in February. Food inflation rate in December 2022 has been (-) 1.25 percent. At the same time, fuel and electricity inflation rate remained at 18.09 percent. Inflation rate of products in the quarter was 3.37 percent.
Trade deficit increased
Meanwhile, the country’s exports fell by 12.2 percent to $34.48 billion in December. It was $39.27 billion in the same month of 2021 a year ago. Imports also fell to $58.24 billion in the month under review from $60.33 billion in the same month a year ago, according to data released by the Commerce Ministry on Monday. Also, the country’s total exports have increased by 9 percent to $332.76 billion in the current financial year from April to December.
Decline in retail inflation
The government released retail inflation data last week. In December 2022, the retail inflation rate has come down to 5.72 percent. Inflation remained in the Reserve Bank’s (RBI) comfort range of 2-6 per cent for the second consecutive month. The retail inflation rate was 5.88 percent in November. While in October 2022 it was 6.77 percent. The RBI has increased the repo rate five times in a row in the current financial year to a total of 2.25 percent to curb inflation.