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regular-article-logo Sunday, 26 May 2024

WPI inflation hits an eight-month high of 0.26 per cent in November due to sharp rise in food prices

The reversal in trend was driven by an uptick in food inflation which jumped to 8.18 per cent in November from 2.53 per cent in October

Our Special Correspondent New Delhi Published 15.12.23, 09:54 AM
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Wholesale price-index-based inflation rose at its fastest pace in eight months at 0.26 per cent in November mainly because of a sharp rise in food prices.

WPI inflation was in the negative zone for the past seven months, at (-) 0.52 per cent in October.

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The reversal in trend was driven by an uptick in food inflation which jumped to 8.18 per cent in November from 2.53 per cent in October.

A sharp increase was noted in the case of vegetables, fruits, milk and eggs.

The last positive WPI inflation was recorded in March at 1.41 per cent. Inflation in onions zoomed 101.24 per cent in November, from 62.60 per cent in the previous month.

Last week, the government banned this kitchen staple’s exports till March next year 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, 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 potatoes 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.

“Even while deflation in manufacturing products and fuel and power segments continued, a sharp pick up in wholesale food inflation along with the fading base effect pushed WPI inflation in the positive territory in November,” Rajani Sinha, chief economist, CareEdge said.

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