WPI inflation in Nov at 0.26%, returns to positive territory after 7 months

The rise in WPI inflation was led by food inflation. The index in this category rose steeply by 4.69% in November as compared to 1.07% in October

India's wholesale price index (WPI)-based inflation came in at 0.26 per cent, according to the data released by the released by the Ministry of Commerce and Industry on Thursday. It has returned to positive territory after seven months. Earlier in March, the WPI-based inflation was 1.34 per cent. 

In October, the WPI inflation was -0.52 per cent, the lowest in three months. In September, it was -0.07 per cent. 

The rise in WPI-based inflation was led by food inflation. The index in this category rose steeply by 4.69 per cent in November as compared to 1.07 per cent in October and 1.88 per cent in September. 

"Positive rate of inflation in November 2023 is primarily due to increase in prices of food articles, minerals, machinery & equipment, computer, electronics & optical products, motor vehicles, other transport equipment and other manufacturing etc," the ministry said in the announcement. 

In the primary articles, the index rose by 1.30 per cent. It was followed by a 0.78 per cent rise in the index for fuel and power, and 0.07 per cent in manufactured products. 

Earlier, this month reported a rise in its retail inflation in November to 5.55 per cent from 4.87 per cent in October. It remained within the Reserve Bank of India's (RBI) tolerance band of 2-6 per cent for the third month in a row in November, However, it has now been above the medium-term target of 4 per cent for 50 consecutive months. 

Shaktikanta Das, governor of RBI, recently said that the inflation figures may show an uptick in November and December owing to food output pressures. "Taking into account these factors and on the assumption of normal monsoons, CPI-based inflation is projected at 5.4 per cent for 2023-24, with Q3 at 5.6 per cent and Q4 at 5.2 per cent," Das had said.

He also added that the ongoing rabi sowing progress for key crops like wheat, spices and pulses needs to be closely monitored.