WPI inflation falls to 4.64 pc in November on softening food prices

Team Udayavani, Dec 14, 2018, 2:58 PM IST

New Delhi: Inflation based on wholesale prices fell to a three-month low of 4.64 per cent in November, as prices of food articles, especially vegetables, softened.

The Wholesale Price Index (WPI)-based inflation stood was 5.28 per cent in October and 4.02 per cent in November last year.

According to the government data released Friday, food articles witnessed softening of prices with deflation at 3.31 per cent in November, against 1.49 per cent in October.

Vegetables, too, became cheaper with deflation at 26.98 per cent in November, compared to 18.65 per cent in the previous month.

Inflation in the ‘fuel and power’ basket in November continued to rule high at 16.28 per cent, but was lower than 18.44 per cent in October. This was on account of lowering of prices of petrol and diesel.

Individually, in petrol and diesel it was 12.06 per cent and 20.16 per cent, respectively, and for liquified petroleum gas (LPG) it was 23.22 per cent during October.

Among food articles, potato prices continued to rule high with 86.45 per cent inflation in November. While onion witnessed deflation of 47.60 per cent; the same for pulses stood at 5.42 per cent.

The 4.64 per cent inflation is the lowest in three months, and a lower inflation than this was last seen in August at 4.62 per cent.

Data released earlier this week showed that the retail or consumer price index-based inflation for November also fell to a 17-month low at 2.33 per cent.

The Reserve Bank of India (RBI) mainly takes into account retail inflation data while formulating monetary policy.

In its fifth monetary policy review for the fiscal, released last week, the Reserve Bank kept interest rates unchanged, but held out a promise to cut them if the upside risks to inflation do not materialise.

The central bank lowered retail inflation projection to 2.7-3.2 per cent for the second half of the current fiscal, citing normal monsoon and moderate food prices.