Wholesale inflation rises at fastest pace in eight months
Sandeep Dikshit
New Delhi, December 14
Wholesale price-based inflation rose at its fastest pace in eight months, rising by 0.26% in November mainly due to a sharp rise in food prices.
The Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group have increased from 179.6 in October to 183.1 in November, 2023. The rate of inflation based on WPI Food Index increased from 1.07% in October to 4.69% in November. The WPI Food Index has a weight of 24.38%, or nearly a quarter of the WPI.
Onion prices zoom over 101%
- The WPI inflation was in the negative or deflationary zone for the past seven months since April and was at (-) 0.52% in October
- The last positive wholesale inflation was recorded in March at 1.41%
- Food inflation jumped to 8.18% in November, from 2.53% in October
- Inflation in onion zoomed 101.24% in November, from 62.60% in the previous month
In the Food Articles Group in the Primary Articles segment, inflation rose to 8.18% in November, from 2.53% in October. This was mainly due to a whopping 101% increase in the prices of onions, 21.64% rise in prices of pulses, 10.44% in paddy, 10.44% in vegetables, fruits by 8.44% and milk by nearly 8%. On the other hand, the prices of potatoes deflated by 27.22%.
The RBI in its bi-monthly monetary policy last week had also flagged the risks of rising food inflation in November and December.
The WPI inflation was in the negative zone for the past seven months. It was recorded at (-) 0.52% in October. “Positive rate of inflation in November is primarily due to increase in the prices of food articles, minerals, machinery & equipment, computer, electronics and optical products, motor vehicles, other transport equipment and other manufacturing etc.,” said an official statement.
