5.85%, wholesale inflation declines to 21-month low
New Delhi, December 14
The wholesale price-based inflation declined to a 21-month low of 5.85 per cent in November as the prices of food, fuel and manufactured items softened, according to data released by the National Statistical Office (NSO) on Wednesday. This is in line with the fall in consumer price index (CPI)- based inflation which fell to 5.88 per cent in November for the first time in 11 months due to softening of food prices.
The WPI data remained in double digits for 19 months and has been on a declining trend since May. It came down to single digit in October at 8.39 per cent.
“Decline in the rate of inflation in November is primarily contributed by fall in the prices of food articles, basic metals, textiles, chemicals and chemical products and paper and paper products as compared to the corresponding month previous year,” said an official statement.
Inflation in food was 1.07 per cent against 8.33 per cent in the previous month and in vegetables, it contracted 20.08% as compared to 17.61% in October. In the fuel and power basket, inflation remained at a high of 17.35%, while in manufactured products, it was 3.59%. The RBI had last week said the worst of inflation was over, but cautioned against complacency and hiked the benchmark policy rate by 35 basis points to 6.25%.
“The fall in WPI inflation needs to be consistent and durable for the policymakers to take note of it and change their view and soften their stance on it,” an industry expert said. — TNS
Below double-digit mark for 2nd month
- For second consecutive month, WPI inflation stayed below double-digit mark
- Before October, it was above 10 per cent for 18 straight months since April 2021
- In November 2021, the WPI-based inflation was 14.87 per cent
