WPI inflation surges to 14.23% in November as crude, metal prices harden

It has been reported that The wholesale inflation across the country spiked to an unexpected high of 14.23 percent in November, data released by the Ministry of Commerce & Industry showed on Tuesday. Inflation in October this year was at 12.54 percent, while in November 2020 it was at 2.29 percent.

”The high rate of inflation in November 2021, is primarily due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, chemicals and chemical products, food products etc as compared to the corresponding month of the previous year,” the government said in a statement.

WPI inflation has remained in double digits for eight consecutive months beginning April this year.

Inflation in fuel and power basket was higher at 39.81 per cent in November, as against 37.18 percent in October. The food index more than doubled to 6.70 per cent as compared to 3.06 percent in the previous month.

Crude petroleum inflation was at 91.74 per cent during the month under review, as against 80.57 percent in October. However, manufactured items saw moderation at 11.92 percent, from 12.04 percent in October.

Meanwhile, data released on Monday stated that retail inflation in the month of November rose to 4.91 percent, towards the upper limit of the Reserve Bank of India’s target range, due to a sharp rise in prices of fruits and vegetables. The CPI-based inflation was at 4.48 percent in October and 6.93 percent in November 2020.

The RBI has been mandated by the government to keep retail inflation at 4 percent with a margin of 2 percent on either side. The data in November is within the central bank’s target for the fifth consecutive month. (Business Today)