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WPI-based inflation down to 4.64% in Nov from 5.28% the previous month

November food inflation also saw a drop to -1.96% as compared to -0.64% MoM

BS Web Team  |  New Delhi 

Vegetable, Retail inflation

The rate of inflation based on Wholesale Price Index (WPI) eased to 4.64 per cent in November from 5.28 per cent the previous month. November also saw a drop to -1.96% as compared to -0.64% month on month (MoM). According to the government data released Friday, food articles witnessed softening of prices with deflation at 3.31 per cent in November, against 1.49 per cent in October. .

Vegetables, too, became cheaper with deflation at 26.98 per cent in November, compared to 18.65 per cent in the previous month.

Inflation in the 'fuel and power' basket in November continued to rule high at 16.28 per cent, but was lower than 18.44 per cent in October. This was on account of lowering of prices of petrol and diesel.

Individually, in petrol and diesel it was 12.06 per cent and 20.16 per cent, respectively, and for liquefied petroleum gas (LPG) it was 23.22 per cent during October.

Among food articles, potato prices continued to rule high with 86.45 per cent inflation in November. While onion witnessed deflation of 47.60 per cent; the same for pulses stood at 5.42 per cent.

On Wednesday, data released by the Central Statistics Office (CSO) had shown that industrial production and retail inflation — improved their performance in October and November, respectively. Industrial activity grew at an 11-month-high rate of 8.1 per cent in October, while the Consumer Price Index (CPI) -based inflation rate fell to a 17-month low of 2.33 per cent in November. The index of industrial production rose from 4.5 per cent in September, with the major sectors registering strong growth. Manufacturing, which accounts for roughly three-fourths of the index, grew 7.9 per cent in October, from 4.6 per cent in September. Electricity generation and mining output increased by 10.8 per cent and 7 per cent from 8.2 per cent and almost 0 per cent, respectively. Capital goods, which denotes investment activity, grew by 16.8 per cent.

The consumer price index (CPI) fell from 3.38 per cent in October, on the back of falling food prices, correction in retail fuel prices and the waning impact of the Housing Rent Allowance revision. The consumer food price index contracted by 2.61 per cent in November, with major segments such as vegetables, pulses and sugar contracting.

First Published: Fri, December 14 2018. 12:12 IST