The wholesale price index-based (WPI-based) inflation rate jumped to 1.55 per cent in November as manufactured products turned costlier, while food prices eased, data released by the Ministry of Commerce and Industry showed on Monday.
This is the highest level of Wholesale price index-based (WPI) inflation since February, when it was 2.26 per cent. The WPI inflation was 1.48 per cent in October 2020 and 0.58 per cent in November last year.
“The rate of inflation, based on monthly WPI, stood at (1.55 per cent) (provisional) for the month of November, 2020 (over November, 2019) as compared to 0.58 per cent during the corresponding month of the previous year,” a Ministry of Commerce and Industry statement on WPI said.
As per Reuters poll, issued on Monday, “the annual WPI rose in November, mainly because of an increase in prices of manufacturing items in the festival season, from a year earlier.” Analysts had predicted a rise of 1.62 per cent in the Reuters polls.
Food inflation in November stood at 3.94 per cent, against 6.37 per cent in the previous month.
The rate of price rise in vegetables and potato remained high at 12.24 per cent and 115.12 per cent during the month.
Inflation in non-food articles was higher at 8.43 per cent in November.
Fuel and power basket softened to (-) 9.87 per cent in November.
On a sub-segment basis, prices of manufactured items remained at elevated levels with a rise of 2.97 per cent from 2.12 per cent reported for September and (-) 0.84 per cent recorded during October 2019.
The RBI in its monetary policy earlier this month had said that inflation will remain elevated, barring transient relief in the winter months.
The central bank had projected retail inflation, based on consumer price index, at 6.8 per cent in the October-December quarter.