WPI Inflation Hits 12-Year High In November, Spikes To 14.2 Per Cent

Inflation in October this year was at 12.54 per cent, while in November 2020 it was at 2.29 per cent

The food index more than doubled to 6.70 per cent in November as compared to 3.06 per cent in October. Image: Getty

New Delhi: Annual wholesale price-based inflation (WPI) of India surged to more than a decade high of 14.23 per cent in November, mainly because of rising prices of mineral oils, basic metals, crude petroleum, and natural gas.

WPI inflation has remained in double digits for eight consecutive months beginning April. Inflation in October this year was at 12.54 per cent, while in November 2020 it was at 2.29 per cent.

The Commerce and Industry Ministry on Tuesday said in a statement, “The high rate of inflation in November 2021, is primarily due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, chemicals, and chemical products, food products etc. as compared to the corresponding month of the previous year.”

Inflation in fuel and power basket was higher at 39.81 per cent in November, as against 37.18 per cent in October. The food index more than doubled to 6.70 per cent as compared to 3.06 per cent in the previous month.

Inflation of crude petroleum was at 91.74 per cent in November, as against 80.57 per cent in October. However, manufactured items saw moderation at 11.92 per cent, from 12.04 per cent in October.

Data released on Monday showed, retail inflation based on Consumer Price Index (Combined) surged to three months high of 4.91 per cent in November, from 4.48 per cent a month ago, as food prices inched up.

The gap between retail and wholesale price-based inflation has widened in recent months as many companies and retailers are struggle to absorb galloping input costs that threaten their bottom lines.

The Consumer Price Index (CPI) based inflation, however, remained within the comfort zone of the Reserve Bank of India. The government has mandated the central bank to keep inflation at 4 per cent (+/- 2 per cent).