Wholesale inflation dips to 3.15% in November as food prices cool

New Delhi: Wholesale inflation eased for the third straight month as it fell to 3.15 percent in November after subdued demand due to demonetisation led to softening of prices of vegetables and other kitchen staples.

 Wholesale inflation dips to 3.15% in November as food prices cool

Representative image, Reuters

The wholesale price index-based inflation, reflecting the annual rate of price rise, in October stood at 3.39 percent. In November 2015, the print was (-)2.04 percent.

WPI inflation in vegetables, at (-)24.10 percent in November, saw deflationary pressure for the third consecutive month. This was helped by a substantial price fall in onions, which stood at (-)51.51 percent.

Pulse inflation continued to rule high at 21.73 percent in November, according to commerce ministry data. Potato recorded maximum inflationary pressure at 36.97 percent. Inflation in fruits rose to 2.45 percent during the month.

Overall, the food inflation basket showed moderation with inflation at 1.54 percent in November as against 4.34 percent in October.

The reading for manufactured articles was 3.20 percent compared with 2.67 percent in the previous month. The corresponding figure for sugar came in at 31.76 percent and that of petrol 5.54 percent.

The WPI inflation for September has been revised upwards at 3.8 percent against the provisional estimate of 3.57 percent.

The decline in wholesale inflation coincides with a fall in retail inflation, which hit a two-year low of 3.63 percent in November.

The monetary policy committee headed by RBI Governor Urjit Patel had earlier this month held interest rates steady and said demonetisation of high value currency notes could lower prices of perishables and reduce CPI inflation by 10-15 basis points by December.

Even as RBI maintained 5 percent inflation target for March 2017, it trimmed GDP growth forecast to 7.1 percent, from 7.6 percent, for the current fiscal.

Updated Date: Dec 14, 2016 15:10:12 IST