New Delhi: In December, retail food inflation in India increased to 9.53%, up from 8.7% in November, driven by less favourable base effects. However, the consumer food price index (CFPI) witnessed a sequential decline of 0.88% during the same period. The annual food inflation for December 2022 stood at 4.19%, Financial Express reported.Despite a year-on-year rise of 11.5% in July 2023 due to increased prices of tomatoes and cereals, CFPI had declined to 9.94% in August and 6.62% in September, primarily influenced by softer tomato prices, the newspaper reported.Retail onion inflation surged by 74.17% in December, reaching Rs 90/kg in several cities, prompting the government to impose an export ban. This steep increase followed an 86.46% spike in November due to delayed arrival of kharif crops and unseasonal rains affecting crops in Maharashtra and Karnataka. However, onion prices have softened since the beginning of this month, and this decline is expected to reflect in January 2024’s inflation figures.Pulses inflation rose to 20.73% in December, up from 20.23% in November, with the arhar variety witnessing a substantial price increase of 42%. Declining production and robust demand were cited as key factors contributing to the rise in pulses inflation.Overall cereals inflation dropped to 9.93% in December from 10.27% in November 2023, primarily due to a slight softening in wheat prices.Wheat inflation further declined to 4.69% in December, attributed to improved supplies from open market sales by the Food Corporation of India.Retail rice prices rose by 12.33% in December, compared to 11.81% in November. The government’s measures to ban white rice exports and impose a 20% export duty on par-boiled rice contributed to the increase.Also read: Rising Thali Cost, Muted Fmcg Growth, Booming Luxury Sales: Why the K-Shaped Recovery Still Stands“Outlook for the inflation for certain items like rice, wheat and pulses remains somewhat vulnerable, given the estimated fall in annual kharif production, as well as the year-on-year lag in the ongoing rabi sowing season amid El Nino conditions,” Aditi Nayar, chief economist, ICRA, told the business daily.Consumer price index (CPI)-based inflation rose 5.69%, its fastest pace in four months in December, the statistics ministry said.Separately, industrial output growth fell to an eight-month low of 2.4% in November. The previous low of IIP (Index of Industrial Production) growth was recorded at 1.9% growth in March 2023, reported Deccan Herald.