NEW DELHI: Wholesale price inflation rose to an eight-month high of 0.26 percent in November, driven by a sharp jump in food prices, especially onions and vegetables.
WPI inflation has been in the negative or deflationary zone for the last seven months since April and stood at (-)0.52 percent in October.
The last positive WPI inflation was recorded in March at 1.41 percent.
“The positive inflation rate in November 2023 is mainly due to the increase in prices of food items, minerals, machinery and equipment, computers, electronic and optical products, motor vehicles, other transport equipment and other industries, etc.” Ministry of Commerce and Industry said in a statement.
Food inflation soared to 8.18 percent in November, compared to 2.53 percent in October.
Onion inflation increased by 101.24% in November, compared to 62.60% in the previous month.
The government last week banned exports of this kitchen staple until March next year in a bid to increase domestic availability and contain prices, which have soared to Rs 80/kg in the retail market. She expects prices to come down to Rs 40/kg by January.
Inflation in horticultural products was 10.44 percent, compared to (-)21.04 percent in October.
In rice and fruits, inflation was 10.44 percent and 8.37 percent, respectively. Potato inflation remained low at (-)27.22 percent in November.
During the month, inflation for manufactured products stood at (-)0.64 percent, for fuel and energy (-)4.61 percent and for non-food items (-)3.20 percent.
Barclays Research said that the magnitude of the increase in wholesale food prices was greater than that in retail food prices, indicating that wholesalers did not pass on the entire price increase to consumers, which may be reflected in elevated retail food prices in December, unless supply (particularly of vegetables) increases.
O RBI in its monetary policy review last week it had said there would be an increase in inflation data for November and December due to pressure on food prices.
“Going forward, the inflation outlook would be considerably influenced by food price uncertainty. High-frequency food price indicators point to an increase in the prices of key vegetables, which could increase CPI inflation in the near term,” said the RBI Governor. Shaktikanta Das had said.
Inflation based on retail or consumer prices rose at the fastest pace in three months at 5.55% in November, driven by a rise in food prices, data released earlier this week showed.
The RBI had projected an average inflation of 5.4% this fiscal.
The Asian Development Bank (ADB), in its December outlook released on Wednesday, said India's inflation forecasts for 2023 and 2024 are in line with recent data and still within expectations. It predicted retail inflation of 5.5% for this fiscal year.



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