Core inflation rises to 24-months high of 1.5% in November 2016
The Wholesale Price Index (WPI)-based inflation eased for the third straight month to 3.2% in November 2016 from 3.4% in October 2016. The decline in WPI inflation was entirely driven by a dip in inflation for primary articles, while fuel and power and manufactured products group inflation continued to rise in November 2016. Further, the unfavourable base effect restricted sharp decline in inflation in November 2016.Inflation of primary articles dipped to 1.2% in November 2016 from 3.3% in October 2016. The inflation for manufactured products rose to 3.2% in November 2016. Further, the inflation for fuel items accelerated further to 7.1% in November 2016 from 6.2% in October 2016.
As per major commodity group-wise, inflation eased for fruits, vegetables, egg, fish, spices, fibres, oilseeds, flowers, edible oils, oilcakes, tea, beverages and tobacco products, wood and products, non-metallic mineral products and automotives in November 2016. On the other hand, inflation of foodgrains, coffee, sugarcane, iron ore, crude petroleum, mineral oils, grain mill products, sugar, textiles, paper products, leather products, rubber products, chemical products, and basic metals rose in November 2016.
Inflation of food items (food articles and food products) eased to 4.4% in November 2016 from 6.3% in October 2016. Meanwhile, inflation of non-food items (all commodities excluding food items) moved up to 2.6% in November 2016 from 2.1% in October 2016.
Core inflation (manufactured products excluding foods products) rose to 24-months high of 1.5% in November 2016 from 1.1% in October 2016.
The contribution of primary articles to the overall inflation, at 3.15%, was 36 basis points (bps) in November 2016 compared with 96 bps in October 2016. The contribution of manufactured products was 179 bps compared with 151 bps, while that of fuel product group was 106 bps against 92 bps in October 2016.
The contribution of food items (food articles and food products) to inflation fell to 140 bps in 3.39% in November 2016 compared with 197 bps to 3.39% in October 2016. Meanwhile, the contribution of non-food items (all commodities excluding food items) was 179 bps in November 2016 compared with 144 bps in October 2016.
As per the revised data, the inflation figure for September 2016 was revised up to 3.8% compared with 3.6% reported provisionally.
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