Inflation based on wholesale prices fell to a 8-month low of 3.80% in December 2018, on softening prices of fuel and some food items. The Wholesale Price Index (WPI)-based inflation stood at 4.64% in November, 2018, and 3.58% in December 2017. The 3.80% inflation is the lowest in 8 months, and a lower inflation than this was last seen in April at 3.62%
Deflation in food articles stood at 0.07% in December. Vegetables too saw deflation at 17.55%. Inflation in the fuel and power basket in December slumped to 8.38% on account of lowering of prices of petrol and diesel.
The Reserve Bank of India mainly takes into account retail inflation data while formulating monetary policy.