Data Alert
Nov WPI inflation eases to 1.89% from Oct's 4-mo high of 2.36%
This story was originally published at 13:22 IST on 16 December 2024
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--India Nov WPI inflation rate at 1.89% vs 2.36% in Oct
--Informist poll estimated India Nov WPI inflation at 2.1%
--India Nov WPI food inflation at 8.92% vs 11.59% in Oct
--India Nov WPI primary articles inflation at 5.49% vs 8.09% in Oct
--India Nov WPI fuel and power inflation at -5.83% vs -5.79% in Oct
--India Nov WPI manufactured products inflation at 2.00% vs 1.50% in Oct
--India Nov WPI all commodity index down 0.1% on month
--India Nov WPI food index down 0.5% on month
--India Nov WPI primary articles index down 1.2% on month
--India Nov WPI fuel and power group index up 0.4% on month
--India Nov WPI manufactured products index up 0.4% on month
--India Nov WPI vegetable index down 7.9% on month
--India Nov WPI cereals index up 1.2% on month
--India Nov WPI edible oils index up 7.1% on month
--India Nov WPI basic metals index down 0.3% on month
--India Sept WPI inflation rate revised to 1.91% vs 1.84% provisional
--India Nov WPI core inflation rate at 0.5% vs 0.3% in Oct
NEW DELHI – India's WPI inflation eased to 1.89% in November from a four-month high of 2.36% in October, data released Monday by the commerce ministry showed. Wholesale inflation fell in November because of a sequential decline in food prices and primary articles.
At 1.89%, WPI inflation in November was lower than the consensus expectation. According to an Informist poll, WPI inflation was seen at 2.1% in November. The September print of WPI inflation was revised higher to 1.91% from the provisional print of 1.84%. WPI inflation rate was 0.39% in November 2023.
The all commodity index was down 0.1% on month in November, pulled down by a 1.2% decline in the primary articles index from October and a 0.5% fall in the food index.
Thanks to the sequential fall in prices, wholesale food inflation was at a three-month low of 8.92% in November. Primary articles wholesale inflation moderated to 5.49% last month, the lowest since August.
Within food, the deceleration was led by vegetables, whose prices fell 8.6% from October. Tomatoes led the fall in vegetable prices last month, falling 33.9% on month in November. Wholesale tomato inflation fell drastically to 28.76% last month from 239.39% in October.
Along with tomatoes, wholesale prices of cauliflowers, radishes, bottle gourds, and beans also fell on a month-on-month basis, together contributing to the overall decline in wholesale food inflation, and in turn the headline WPI inflation. Wholesale prices of potatoes and onions, on the other hand, rose 2.6% and 5.5% on month, respectively, in November.
Apart from vegetables, wholesale prices of pulses, fruits, and milk fell sequentially last month. Prices of cereals and 'eggs, meat and fish' rose on month in November.
Manufactured products inflation rose to 2.00% in November from 1.50% in October, while fuel and power remained in the deflation zone for the fourth consecutive month at (-)5.83%.
Wholesale core inflation, which excludes food and fuel items, rose to a three-month high of 0.5% in November from 0.3% in October. "The core inflation prints have largely remained subdued, averaging at just 0.4% during Apr-Nov, which along with the benign prints in primary non-food articles and crude petroleum and natural gas, has contained the uptick in the headline WPI inflation during this period, despite elevated food inflation," said Rahul Agrawal, senior economist at rating agency ICRA.
Even as WPI inflation fell more than expected in November, it remained well below its retail counterpart. Data released Thursday showed CPI inflation fell to 5.84% in November from a 14-month high of 6.21% in October. ICRA expects WPI inflation to rise to around 2.5-3.0% in December.
The following table details the sequential and annual increase in the main components of the WPI:
| Weight | Index for November | Month-on-month change (in %) | Year-on-year change (in %) | ||
| November | October | ||||
| ALL COMMODITIES | 100.00 | 156.0 | (-)0.1% | 1.89% | 2.36% |
| PRIMARY ARTICLES | 22.62 | 197.9 | (-)1.2% | 5.49% | 8.09% |
| Food articles | 15.26 | 214.0 | (-)1.8% | 8.63% | 13.54% |
| Cereals | 2.82 | 211.2 | 1.2% | 7.81% | 7.91% |
| Pulses | 0.64 | 230.8 | (-)2.0% | 5.97% | 9.74% |
| Vegetables | 1.87 | 332.6 | (-)7.9% | 28.57% | 63.04% |
| Potato | 0.28 | 384.4 | 2.6% | 82.79% | 78.73% |
| Onion | 0.16 | 504.5 | 5.5% | 2.85% | 39.25% |
| Tomato | 0.28 | 425.8 | (-)33.9% | 28.76% | 239.39% |
| Fruits | 1.60 | 203.7 | (-)3.2% | 8.41% | 13.55% |
| Milk | 4.44 | 185.3 | (-)0.2% | 2.09% | 3.00% |
| Eggs, meat, and fish | 2.40 | 173.1 | 1.2% | 3.16% | (-)0.52% |
| Non-food articles | 4.12 | 162.2 | 0.6% | (-)0.98% | (-)1.71% |
| Oil seeds | 1.12 | 185.9 | 0.2% | 0.49% | 2.04% |
| Minerals | 0.83 | 228.5 | 2.1% | 5.89% | 1.87% |
| Iron ore | 0.21 | 137.4 | 11.5% | 20.84% | 10.00% |
| Crude petroleum | 1.95 | 124.3 | (-)0.9% | (-)7.72% | (-)12.98% |
| FUEL and POWER | 13.15 | 147.1 | 0.4% | (-)5.83 | (-)5.79% |
| Coal | 2.14 | 135.5 | 0.0% | (-)0.88% | (-)0.88% |
| Liquefied petroleum gas | 0.64 | 123.6 | 3.2% | 1.81% | 2.57% |
| Petrol | 1.60 | 148.7 | (-)0.8% | (-)6.83% | (-)7.35% |
| High speed diesel | 3.10 | 164.4 | 0.1% | (-)5.68% | (-)6.23% |
| Electricity | 3.06 | 137.3 | (-)0.1% | (-)10.44% | (-)3.58% |
| MANUFACTURED PRODUCTS | 64.23 | 143.0 | 0.4% | 2.00% | 1.50% |
| Food products | 9.12 | 177.3 | 2.3% | 9.44% | 7.77% |
| Edible oils | 2.64 | 182.0 | 7.1% | 27.99% | 20.16% |
| Textiles | 4.88 | 135.9 | 0.0% | 1.27% | 0.89% |
| Chemical, chemical products | 6.47 | 136.1 | (-)0.1% | 0.07% | (-)0.22% |
| Non-metallic mineral products | 3.20 | 130.6 | 0.4% | (-)2.97% | (-)4.06% |
| Cement and lime | 1.64 | 128.6 | 0.2% | (-)6.47% | (-)7.56% |
| Basic metals | 9.65 | 138.6 | (-)0.3% | (-)1.14% | (-)2.25% |
| Semi-finished steel | 1.27 | 117.7 | 2.5% | (-)0.51% | (-)4.33% |
End
Reported by Shubham Rana
Edited by Tanima Banejee
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