Wholesale Price Inflation (WPI) inflation eases to three-month low in November as food prices cool
- IBEF
- December 17, 2024
India's wholesale price inflation eased to a three-month low of 1.89% in November, according to government data released on December 1, 2024. This decline was driven by reduced food prices, especially vegetables, which helped increase food inflation to 8.63% from 13.54% in October. The sharpest drop was in vegetable prices, which fell to 28.57% in November, compared to 63.04% the previous month. Onion prices saw a decline of 2.85%. Fuel and power prices continued to experience deflation, with a decrease of 5.83% in November, compared to 5.79% in October. Manufacturing product inflation rose to 2% in November from 1.5% in October.
The Ministry of Commerce and Industry attributed the overall positive inflation rate in November to rising prices in food articles, products, textiles, machinery, and equipment. Meanwhile, based on the Consumer Price Index, retail inflation fell to 5.48% in November, down from a 14-month high of 6.21% in October. This reduction has raised expectations for a potential rate cut by the Reserve Bank of India (RBI) in its upcoming monetary policy review in February. The RBI had kept the repo rate unchanged at 6.5% in its monetary policy earlier this month, maintaining a neutral stance for the 11th consecutive time.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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