Wholesale price-based inflation slowed to 1.22 per cent in December on lowering of food prices, according to government data released on Thursday.
Retail inflation based on the Consumer Price Index (CPI) was 6.93 per cent in November.
Inflation based on Wholesale Price Index (WPI) was 1.55 per cent in November 2020, and 2.76 per cent in December 2019.
The rate of inflation based on WPI Food Index decreased from 4.27 per cent in November 2020 to 0.92 per cent in December 2020, according to the data released by the Department for Promotion of Industry and Internal Trade.
Additionally, retail inflation had also dropped sharply to 4.59 per cent in December, on the back of declining food prices.
WPI is used to gauge average change in price of sale of goods or services in bulk by the wholesaler and consumer price index (CPI) measures the change in the price in sale of goods or services in retail or it measures price of goods or services sell directly to consumers.