WPI Inflation At 0.26 Per Cent In November, Back To Positive Zone After 7 Months
Commerce Ministry said that positive rate of inflation in November, 2023 is primarily due to rising prices of food articles
India's wholesale price-based (WPI) inflation rose at the fastest pace in eight months at 0.26 per cent in November, mainly because of a steep rise in food prices. The WPI inflation was in the red zone for the past seven months. It was recorded at (-) 0.52 per cent in October. The Commerce and Industry Ministry in a statement on Thursday said, "Positive rate of inflation in November, 2023 is primarily due to increase in prices of food articles, minerals, machinery and equipment, computer, electronics & optical products, motor vehicles, other transport equipment and other manufacturing etc."
Meanwhile, retail inflation for November rose to 5.55 per cent as against 4.87 per cent in October, according to the latest data released by the National Statistical Office (NSO) on December 12. Though the headline inflation is still under the Reserve Bank of India's (RBI's) comfort zone of below 6 per cent, it has now been above the medium-term target of 4 per cent for 50 consecutive months.
Inflation in onion zoomed 101.24 per cent in November, from 62.60 per cent in the previous month.
The government last week banned exports of this kitchen staple till March next year in a bid to increase domestic availability and contain prices, which skyrocketed to Rs 80/kg in the retail market. It expects prices to cool to Rs 40/kg by January.
Inflation in vegetables was 10.44 per cent, as against (-)21.04 per cent in October.
In paddy and fruits, inflation was 10.44 per cent and 8.37 per cent respectively. Inflation in potato remained low at (-)27.22 per cent in November. During the month, inflation in manufactured products stood at (-)0.64 per cent, fuel and power (-)4.61 per cent and non-food articles (-)3.20 per cent.
Barclays Research said the magnitude of increase in wholesale food prices was more than in retail food prices, indicating wholesalers did not pass through the entire price rise to consumers, which may be reflected in elevated retail food prices in December, unless supply (particularly of vegetables) increases.
Retail inflation in November surged up to three-month high because of unfavourable base effect and resurgence in prices of vegetables and pulses. Inflation had been declining since August when it touched 6.83 per cent.
The RBI in its bi-monthly monetary policy last week, held interest rates steady and flagged risks of rising food inflation in November and December.
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