Deflationary trend eased in November with WPI inflation moving up to (-)1.99 per cent as food articles, led by pulses and onion, turned costlier.
This is the 13th month in a row when the wholesale inflation remained in the negative territory. It has been in the negative zone since November last year.
The Wholesale Price Index-based inflation has been rising for three months in a row and was (-)3.81 per cent in October.
In November last year, it was (-)0.17 per cent, as per official data released today.
Food inflation shot up to 5.20 per cent in November, as against 2.44 per cent in October.
Inflation in pulses and onion stood at 58.17 per cent and 52.69 per cent, respectively. The rate of price rise in case of vegetables was 14.08 per cent during November.
The rate of price rise in potato was (-)53.72 per cent, while in egg, meat and fish it was (-)2.24 per cent.
Inflation in fuel and power segment was (-)11.09 per cent, while for manufactured products it was (-)1.42 per cent in November.
Inflation for September has been revised to (-) 4.59 per cent, from the provisional estimate of (-)4.54 per cent.
The Reserve Bank mostly tracks the Consumer Price Index (CPI)-based retail inflation for its monetary policy decisions.
The data of November retail inflation is expected later in the day. In October, CPI inflation was 5 per cent.
Earlier this month, RBI Governor Raghuram Rajan had left the key interest rate unchanged in view of rise in retail inflation to 4-month high and likelihood of capital outflows on a possible US Fed rate hike around mid-December.
In September, RBI had reduced interest rates by a more-than-expected 0.50 per cent. It projected retail inflation to be 5 per cent by March, 2017.
The WPI inflation for November has been revised upwards
to 3.38 per cent against the provisional estimate of 3.15 per cent.
The rise in wholesale inflation is in contrast to the fall in retail inflation, which hit a five-year low of 3.17 per cent in January.
In its policy last week, RBI retained the benchmark interest rate and changed the stance from 'accommodative' to 'neutral', indicating that there will not be any rate cut in the near term.
It may, however, have to review its policy stance in the wake of retail inflation touching multi-year low in January.
The RBI projected inflation will remain below 5 per cent in the January-March quarter of this fiscal but hardening of global crude oil prices and volatility in exchange rates could put upside pressure in the next financial year.
It said inflation will be in the range of 4-4.5 per cent in the first half and 4.5-5 per cent in the second half of 2017-18.
