India's WPI inflation falls to a 21-month low in November

14 Dec 2022 , 01:55 PM

According to preliminary statistics released by the Commerce Ministry on Wednesday, India’s wholesale price index-based inflation decreased to a 21-month low of 5.85% in November from 8.39% in October, on an annual basis.

When compared to October’s 0.39% gain, the monthly change in the WPI index for November 2022 showed a drop of 0.26%.

According to the announcement, the decrease in inflation in November 2022 was mostly caused by lower prices for food items, basic metals, textiles, chemicals & chemical products, and paper & paper products when compared to the same month the previous year.

Inflation for food products increased to 2.17% from 8.33% in October. The segment’s inflation rate for primary articles was 5.52%, down from the previous month’s 11.04% rate.

Wholesale price increases for natural gas and crude oil jumped to 48.23% in November from 43.57% in October. Inflation for fuel and electricity decreased from 23.17% in October to 17.35%.

In November, the inflation rate for manufactured goods was 3.59%. Compared to 4.42% in October, the figure has decreased.

Retail inflation for the month of November recently decreased to 5.8%, an 11-month low, and fell inside the RBI’s tolerance range of 2—6% after 10 months.

India has been concentrating on reducing its high inflation rate. “We are extremely alert of emerging inflation dynamics and look at data virtually daily. We will maintain an Arjuna’s eye on inflation and we will be ready to act,” RBI governor Shaktikanta Das recently stated.

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