Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / Policy/  WPI inflation at 8-month high of 3.93% in November
BackBack

WPI inflation at 8-month high of 3.93% in November

WPI inflation rose mainly account of a sharp increase in fuel and food prices, according to data released by the commerce ministry

The increase in food prices was led by the sharp increase in vegetable prices that rose by 60% mainly due to soaring onion prices. Graphic: Naveen Kumar Saini/MintPremium
The increase in food prices was led by the sharp increase in vegetable prices that rose by 60% mainly due to soaring onion prices. Graphic: Naveen Kumar Saini/Mint

New Delhi: Inflation based on the Wholesale Price Index (WPI) accelerated to an eight-month high of 3.93% in November, from 3.59% in October, adding to the string of worrisome economic data released this month.

Data released earlier this week showed that retail inflation unexpectedly jumped to a 15-month high of 4.88% in November, and industrial production slowed to 2.2% in October.

WPI-based inflation rose mainly on account of a sharp increase in fuel and food prices, according to data released by the commerce ministry. While fuel price index rose by 8.8%, food prices index rose 6.06%. The increase in food prices was led by the sharp rise in vegetable prices that rose by 60% mainly due to soaring onion prices.

All three components of the fuel price index—liquefied petroleum gas, petrol and high speed diesel—rose sharply during the month. Manufactured products inflation was at 2.6% led by price rise in tobacco, basic metals, apparel, cement and paper products.

Economists point out that the sharp increase in the inflation indices justify the cautious tone of the Reserve Bank of India in its statement on last week’s monetary policy which kept interest rates unchanged. Care Ratings, in a note on Thursday, pointed out that upside risks to inflation could emerge if crude oil prices increase with Opec member countries looking to curb oil production or if rabi crop output is lower than last year.

“Going forward, we expect wholesale inflation to be around 3.5-4% by the end of the fiscal year," the note said.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 14 Dec 2017, 12:43 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App