India’s November wholesale inflation eases to 21-month low of 5.85%

India’s annual wholesale price-based inflation (WPI) eased in November to a 21-month low of 5.85 per cent year-on-year (YoY) as food prices moderated, government data showed on Wednesday. In October, the WPI-based inflation was 8.39 per cent.

It is for the second consecutive month that the WPI inflation has stayed below the 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.

“Decline in the rate of inflation in November 2022 is primarily contributed by fall in prices of food articles, basic metals, textiles, chemicals & chemical products and paper & paper products as compared to the corresponding month of the previous year,” the ministry of commerce said.

The highest price fall, 20.08 per cent YoY, was recorded in vegetables, followed by 19.19 per cent in onions.

“The rate of inflation based on the WPI Food Index decreased from 6.48 per cent in October 2022 to 2.17 per cent in November 2022,” it added.

The highest inflation was recorded in the fuel and power category, with YoY growth of 17.35 per cent. Primary articles at 5.52 per cent followed it.

On a month-on-month (MoM) basis, Fuel and Power was the only category to record a price rise. The WPI-based inflation was 2.84 per cent, as compared to October. Rest all the categories recorded negative inflation.

In Crude Petroleum and Natural Gas, the inflation was 48.23 per cent in November YoY.

The reading was lower than the Reuters forecast of 6.50 per cent and 8.39 per cent recorded in the previous month.

(With agency inputs)