16/01/2017 2:39 PM IST | Updated 16/01/2017 2:46 PM IST

India Wholesale Inflation Rises 3.39% In December

The numbers are in contrast to retail inflation, which is at a two year low.

Amit Dave / Reuters

India's wholesale prices rose 3.39 percent year-on-year in December, their fastest pace in two months, government data showed on Monday.

The data compared with a 3.50 percent annual rise forecast by economists in a Reuters poll. In November, prices rose a provisional 3.15 percent.

Last month, wholesale food prices fell 0.70 percent year-on-year, compared with a provisional 1.54 percent gain in November.

The numbers are in stark contrast to retail inflation data. India's retail inflation cooled to a two-year low in November after Prime Minister Narendra Modi's shock currency replacement programme dented consumer spending, fuelling hopes of an interest rate cut by the RBI at its next policy review.

Consumer prices rose by an annual 3.63 percent last month, their slowest pace since November 2014, government data showed on Tuesday. Economists surveyed by Reuters had expected prices to rise 3.90 percent year-on-year, compared with a 4.20 gain in October.

Food inflation was 2.11 percent last month, lower than October's 3.32 percent.

(Compiled by Rajesh Kumar Singh in NEW DELHI; Editing by Malini Menon)