November WPI at 7.52%; food inflation rises to nearly 20%

NEW DELHI: The Wholesale Price Index (WPI) inflation for the month of November rose to 7.52% versus 7% in October. This is higher than an ET Now poll estimate of 7.1%. According to ET Now, the reported WPI inflation for November is also the highest level for the index since September 2012.

The WPI for the month of September was revised upwards to 7.05% versus 6.46% provisional. The primary articles inflation for November rose to 15.92% versus 14.68% in October.

While the manufactured products inflation rose to 2.64% versus 2.50% in October, the Fuel & Power inflation also exhibited a rise to 11.08% versus 10.33% in October. The food inflation rose to a whopping 19.93% versus 18.19% in October.

Last week it was reported that, India's industrial production growth shrank for the first time in four months in October while consumer price inflation raced to its highest ever in November, sharpening the dilemma for RBI Governor Raghuram Rajan ahead of monetary policy announcement.

He signalled a further rise in interest rates to rein in prices even as the economy struggles to rise from the bottom.

Factory output growth, as measured by the Index of Industrial Production ( IIP), contracted by a more-than-expected 1.8% in October, the statistics office said in a statement on Thursday, sending out a reminder to the exuberant markets that economic revival prospects face the risk of wilting under inflation heat.

The consensus was for a 1.2% decline. The high base of last year also contributed to the steep drop.

Consumer price inflation rose to 11.24% in November from 10.17% in October, as the rise in food inflation continued against the wider expectation of a moderation in prices with the onset of winter. This is the highest level of retail inflation as per the consumer price index (CPI) that was rolled out in January 2011.

Vegetable prices shot up by 95.25 per cent in November as compared to 78.38 per cent in the previous month, said the Wholesale Price Index (WPI) inflation data released today.

The overall inflation in the food segment comprising wheat, pulses, vegetables, milk, among others, was at 19.93 per cent, up from 18.19 per cent in October.

Potato prices shot up by 26.71 per cent in November as compared to a contraction in the previous month.

The onions too were costly, but the price rise was low as compared to October. Onion inflation was at 190.34 per cent in November.

The data further revealed that protein rich items like egg, meat and fish were costlier by 15.19 per cent while milk was dearer by 6.25 per cent in November.