Wholesale price inflation (WPI) for November has hit a 21-month low and went down to 5.85 per cent from 8.39 in October this year. On a yearly basis, WPI inflation went down from 14.87 per cent in November 2021 to 5.85 per cent in November this year.
The decline in inflation can be attributed to fall a in prices of food items, basic metals, textiles, chemicals and chemical products, and paper and paper products compared to the same period last year, as per the Commerce and Industry Ministry release.
WPI food inflation decreased from 6.48 per cent in October to 2.17 per cent in November. Food groups that saw a decline are vegetables (-20.08 per cent in November this year vs 3.44 per cent last year); eggs, meat and fish (2.27 per cent in November this year vs 9.40 per cent last year); cereals (1.07 per cent in November this year vs 4.82 per cent last year); pulses (0.56 per cent in November this year and 2.84 per cent last year); and fruits (-1.07 per cent in November this year vs 15.50 per cent last year).
This, however, is not the only positive news with regards to inflation for Indians as retail inflation went down below RBI's upper tolerance limit of 6 per cent for the first time in November. Consumer price inflation (CPI) dropped from 6.77 per cent in October this year to 5.88 per cent in November this year. CPI inflation was 4.91 per cent in November last year.
Commenting on inflation figures, Bank of Baroda chief economist Madan Sabnavis told news agency PTI, "Companies have been passing on higher input costs to the customers which has resulted in this category being sticky." He noted that inflation has been high in categories like household goods, health, recreation, education and personal care.
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