Wholesale inflation back in positive zone after 7 months, at 0.26% in November

Food inflation rose to 8.18% in November, from 2.53% in October. File (representational image)
| Photo Credit: K. Ragesh

After seven months of deflation, India’s wholesale prices rose 0.26% in November compared to a -0.52% rate in October.

The Commerce and Industry Ministry attributed the uptick primarily to an increase in prices of food articles, minerals, machinery & equipment, computer, electronics & optical products, motor vehicles, other transport equipment and other manufactured goods.

Wholesale food prices rose 4.7% in November compared to just 1.07% in the previous month, and were up 2% on a month-on-month basis.

Prices of primary articles rose 4.8% in November from 1.8% in October, while fuel and power prices were 4.6% lower than November last year.

Manufactured products’ prices remained in deflation thought at the slightest rate since at least three months, declining 0.64% from November 2022 levels. Compared to October though, they were higher by 0.07%.

Food prices up

Within primary articles, food articles’ prices were up a sharp 8.2% with paddy and vegetables up 10.44%, pulses rising 21.64%, onions up 101.24%, milk 8% and fruits 8.4%.

While cereals inflation stood at 7.12% compared to almost 13% a year ago, wheat prices were up 2.55% from 18.1% last November.

Within food items, potatoes were the only item to offer some relief at the wholesale price level, dipping 27.2% from last November when they were up 13.75%. Eggs, meat and fish prices were up by a relatively milder 1.44% in November.

Meanwhile, the Commerce and Industry Ministry revised the Wholesale Price Index (WPI) upward for September, updating the inflation rate for the month to -0.07% from -0.26% estimated earlier.

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