Hope vegetable prices would fall soon: DEA Secretary

Economic Affairs Secretary Subhash Chandra Garg today expressed hope that vegetable prices will cool soon, even as both consumer and wholesale inflation hardened in November.

Inflation based on Wholesale Price Index (WPI) surged to an eight-month high of 3.93 per cent in November mainly due costlier onions and other seasonal vegetables.

The consumer price inflation too was at a 15-month high last month.

In a tweet, Garg said the week brought mixed news on the economic data front.

Both consumer and wholesale inflation further rose and IIP growth was quite subdued, he said, but added that vehicle growth turned out to be quite robust and current account deficit halved.

"Hope vegetables prices would fall soon," he said.

Onion and tomato prices in both wholesale and retail markets of the national capital have started coming down with improved supplies from the growing regions, according to traders.

Retail onion prices, which had soared to Rs 80 per kg in the last few weeks, have slipped to Rs 50-60, while tomato prices have declined to Rs 45 per kg from Rs 70-80, trade data showed.

The prices of the two key kitchen vegetables are showing a declining trend in other parts of the country as well.

Meanwhile, industrial production growth hit a three-month low of 2.2 per cent in October, mainly due to subdued performance of manufacturing and mining sectors.

As per Reserve Bank data, current account deficit (CAD) in the second quarter of the fiscal stood at USD 7.2 billion or 1.2 per cent of GDP, compared to USD 15 billion (2.5 per cent of GDP) in the preceding quarter.

Passenger vehicle sales rose by 14.29 per cent in November mainly due to a low base during the same month last year on account of demonetisation.