India’s wholesale inflation declined to a 21-month low of 5.85 per cent in November, according to the latest data released by the commerce ministry on Wednesday. It is lower than than the 8.39 per cent reported in October and significantly down from 10.7 per cent in September.
In November 2021, the wholesale price inflation had stood at 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 Commerce and Industry Ministry said on Wednesday.
The WPI inflation figures come after the latest data recently showed CPI inflation ease to an 11-month low of 5.88 per cent with food prices seeing sharp cooling. With 5.88 per cent, the inflation has come under the RBI’s 2-6 per cent band after remaining beyond it for 10 months consecutively.
This is the first time since February 2021 that the wholesale inflation has been lower than retail inflation. In February 2021, wholesale inflation was 4.83 per cent and retail inflation at 5.03 per cent.
Inflation in food articles in November was 1.07 per cent against 8.33 per cent in the previous month. Inflation in vegetables was (-) 20.08 per cent during the month compared to 17.61 per cent in October.
In the ‘Fuel and power’ basket, inflation was 17.35 per cent, while in manufactured products, it was 3.59 per cent in November.
India’s retail inflation had in October 2022 eased to a three-month low of 6.77 per cent. In September, the inflation had accelerated to a five-month high of 7.41 per cent. Before that, the retail inflation had stood at 7.04 per cent in May, 7.01 per cent in June, 6.71 per cent in July, and 7 per cent in August.
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