WPI-based inflation falls to 4.64% in November, a three-month low
Inflation based on wholesale prices fell to a three-month low of 4.64% in November, as prices of food articles, especially vegetables, softened. The Wholesale Price Index (WPI)-based inflation was 5.28% in October and 4.02% in November last year. According to the government data released today, food articles witnessed softening of prices with deflation at 3.31% in November, against 1.49% in October. Here's more.
Vegetables became cheaper in November while fuel, power prices increased
Vegetables, too, became cheaper with deflation at 26.98% in November, compared to 18.65% in the previous month. Inflation in the 'fuel and power' basket in November continued to rule high at 16.28% but was lower than 18.44% in October. Individually, in petrol and diesel, it was 12.06% and 20.16%, respectively, and for liquefied petroleum gas (LPG) it was 23.22% during October.
Inflation lower than this was earlier seen in August
Among food articles, potato prices continued to rule high with 86.45% inflation in November. The 4.64% inflation is the lowest in three months, and a lower inflation than this was last seen in August at 4.62%. Data released earlier this week showed that the retail or consumer price index (CPI)-based inflation for November also fell to a 17-month low at 2.33%.
RBI kept interest rates unchanged in 5th monetary policy review
In its fifth monetary policy review for the fiscal, released last week, the RBI kept interest rates unchanged but held out a promise to cut them if the upside risks to inflation do not materialize. RBI lowered retail inflation projection to 2.7-3.2% for the second half of the current fiscal. The central bank mainly takes into account retail inflation data while formulating monetary policy.
