WPI Inflation increases in November by 0.26 percent

by Psu Connect
Date: 14-12-23

An increase of 0.26 percent has been observed in WPI Index with food inflation 8.18 percent in November, up from 2.53 percent in October.

WPI Inflation increases in November by 0.26 percent

Wholesale price-based inflation increased by 0.26 per cent in November compared to [-] 0.52 per cent in October. According to official data released by the centre, WPI Inflation, which had been negative for the last seven months, rose sharply in November due to higher food prices. The month-over-month change in the WPI index for November 2023 stood at 0.53 per cent as compared to October 2023.

The positive rate of inflation in November 2023 is primarily due to an increase in prices of food articles, minerals, machinery and equipment, computers, electronics, optical products, motor vehicles etc. The rise in the WPI index has been considerably due to food inflation with the index in this category rising steeply by 4.69 per cent in November as compared to 1.07 per cent in October and 1.88 per cent in September.

The fuel and power index increased by 0.78 per cent to 155.3 per cent in November from 154.1 in October, while prices of electricity increased by 9.93 per cent and mineral oils declined -1.99 per cent. The primary articles index a major group, increased by 1.30 per cent to 186.9 in November from 184.5 in October.

Eight of the groups witnessed an increase in prices, while 10 groups saw a decrease in prices. Manufacture of food products, motor vehicles, trailers and semi-trailers, and fabricated metal products saw an increase in prices, while basic metals, electrical equipment, textiles, and other non-metallic mineral products saw a decrease in prices.

Earlier, CPI or retail inflation reported a rise in November to 5.55 per cent from 4.87 per cent in October. It remained within the RBI's tolerance band of 2-6 per cent for the third month in a row in November. The Projections made by RBI for retail inflation is 5.4 per cent for 2023-24 with Q3 at 5.6 per cent and Q4 at 5.2 per cent.

The Wholesale price-based inflation represents the price of goods at a wholesale stage i.e. goods that are sold in bulk and traded between organizations instead of consumers. It is used as an important measure of inflation in India.