Relief For Consumers As WPI Inflation Eases To 3-Month Low In November

This fall was backed by a major plunge in vegetable prices which stood at 28.57 per cent in November, as compared to 63.04 per cent in October

The wholesale price inflation in India slowed down in November, official data revealed on Monday. The WPI eased to a three-month low of 1.89 per cent after prices of food items declined, government data showed.

Comparatively, the wholesale price index inflation touched 2.36 per cent in October, 2024, reported Business Standard. The data released by the Ministry of Commerce and Industry showed that food prices improved by a big margin in November. From 13.54 per cent in October, food prices declined to 8.63 per cent in the month under review.

This fall was backed by a major plunge in vegetable prices which stood at 28.57 per cent in November, as compared to 63.04 per cent in October. Onion prices also decreased by 2.85 per cent in the reviewing period.

Further, a deflation of 5.83 per cent was clocked in the fuel and power category in November, against 5.79 per cent seen in October. On the other hand, inflation climbed in the manufactured products category and stood at 2 per cent in November from 1.50 per cent logged in October. 

The ministry issued a statement and said, “Positive rate of inflation in November 2024 is primarily due to increase in prices of food articles, food products, other manufacturing, textiles, machinery & equipment, etc.”

Meanwhile, the retail inflation rate last week slipped within the tolerance range of the Reserve Bank of India (RBI) to 5.48 per cent in November, after reaching a 14-month peak of 6.21 per cent in October. This also raised anticipations of a policy rate cut in the upcoming monetary panel committee (MPC) review in February. This is based on the consumer price index.

Notably, the central bank in the first week of December announced that it will maintain the status quo on key rates.