In a nine-month high, the Wholesale Price Index (WPI)- based inflation shot up to 1.55 per cent in November due to an increase in the cost of manufactured products even as food prices eased.
WPI or wholesale price index is used to measure and track changes in the price of goods before they land at retail outlets. The WPI inflation which was 1.48 per cent in October this year, was 0.58 per cent in November last year.
November’s 2020’s number is the highest WPI inflation since February, when it was 2.26 per cent. While food articles saw softening in inflation in November, manufactured items witnessed hardening of prices.
Food inflation in November stood at 3.94 per cent, against 6.37 per cent in the previous month. The rate of price rise in vegetables and potato remained high at 12.24 per cent and 115.12 per cent during the month. Inflation in non-food articles was higher at 8.43 per cent in November. Fuel and power basket softened to (-) 9.87 per cent in November.
In its monetary policy announced last month, the RBI had said that inflation will remain elevated, barring transient relief in the winter months. It had projected retail inflation, based on consumer price index, at 6.8 per cent in the October-December quarter.
(With inputs from agencies)