India wholesale price inflation sees trend reversal, reaches 8-month high of 0.26 per cent in November

India’s wholesale inflation emerged from deflationary territory for the first time since March 2023, reaching 0.26 per cent in November, according to official data released on December 14.

This marks a significant increase from -0.52 percent in October 2023, making it the highest wholesale inflation print in eight months.

The Wholesale Price Index (WPI) data follows the statistics ministry’s announcement two days earlier, revealing that retail inflation had risen to a three-month high of 5.55 per cent in November.

While this is a notable increase, it remains down 189 basis points from the 15-month high of 7.44 percent recorded in July.

Over the same period, wholesale inflation surged by 149 basis points. Similar to the Consumer Price Index, the WPI also experienced a 0.5 per cent month-on-month rise in November.

The primary driver was a 1.9 per cent increase in the food index, with vegetables leading the charge. The price index for vegetables surged 16.5 per cent month-on-month, mainly due to a 41.3 per cent jump in onion prices. Other food items contributing to the rise in wholesale food inflation included fruits (up 1.7 per cent month-on-month), wheat (up 1.6 per cent), and pulses (up 1.4 pe rcent).

In contrast, prices of manufactured products saw minimal changes, with the index rising only 0.1 percent month-on-month.

The inflation in manufactured products was kept in check by the weakness in key raw materials. The price index for semi-finished steel dropped by 1.5 per cent month-on-month, and basic metals witnessed a 0.9 per cent decline compared to October.

Among finished items, leather and related products experienced a 0.6 per cent month-on-month price decline, while pharmaceuticals and rubber/plastic products saw decreases of 0.3-0.4 per cent.

Published By:

Koustav Das

Published On:

Dec 14, 2023

Leave a Reply

Your email address will not be published. Required fields are marked *