WPI inflation spikes to 8-month high of 0.26 pc in Nov on costlier veggies

Wholesale pricebased inflation rose to an eightmonth high of 026 per cent in November driven by a sharp jump in food prices especially onion and vegetablesThe WPI inflation was in the negative or deflationary zone for the past seven months since April and was at 052 per cent in OctoberThe last positive WPI inflation was recorded in March at 141 per centPositive rate of inflation in November 2023 is primarily due to increase in prices of food articles minerals machinery amp equipment computer electronics amp optical products motor vehicles other transport equipment and other manufacturing etc the Commerce and Industry Ministry said in a statementFood inflation spiked to 818 per cent in November from 253 per cent in OctoberInflation in onion zoomed 10124 per cent in November from 6260 per cent in the previous monthThe government last week banned exports of this kitchen staple till March next year in a bid to increase domestic availability and contain prices which skyrocketed to Rs 80kg in the retail market It expects prices to cool to Rs 40kg by JanuaryAlso Read CJI refuses to defer hearing on bail plea of Satyendar Jain listed before another SC benchInflation in vegetables was 1044 per cent as against 2104 per cent in OctoberIn paddy and fruits inflation was 1044 per cent and 837 per cent respectively Inflation in potato remained low at 2722 per cent in NovemberDuring the month inflation in manufactured products stood at 064 per cent fuel and power 461 per cent and nonfood articles 320 per centBarclays Research said the magnitude of increase in wholesale food prices was more than in retail food prices indicating wholesalers did not pass through the entire price rise to consumers which may be reflected in elevated retail food prices in December unless supply particularly of vegetables increasesThe RBI in its monetary policy review last week had said that there would be an uptick in the inflation data for November and December due to pressure on food pricesGoing ahead the inflation outlook would be considerably influenced by uncertain food prices Highfrequency food price indicators point to an increase in prices of key vegetables which may push CPI inflation higher in the near term RBI Governor Shaktikanta Das had saidRetail or consumer pricebased inflation rose at its fastest pace in three months at 555 per cent in November driven by a spike in food prices data released earlier this week showedThe RBI had projected retail inflation to average 54 per cent this fiscalThe Asian Development Bank ADB in its December outlook released on Wednesday said Indias inflation forecasts for 2023 and 2024 are in line with recent data and are still within expectations It forecast retail inflation at 55 per cent for this fiscalThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever