India's wholesale prices rose to the highest level in eight months in November as eggs, fruits and vegetables became more expensive.
Inflation measured by the Wholesale Price Index rose to 3.93 percent during the month from a year earlier, according to a statement by the Commerce Ministry. That's marginally lower than the 4 percent median estimate of economists surveyed by Bloomberg.
Inflation rose for the second straight month as the economy showed signs of recovery from the twin shocks of demonetisation and Goods and Services Tax. The Reserve Bank of India maintained its repo rate during the bi-monthly policy this month, highlighting the upside risks to inflation. The central bank also increased its consumer price inflation projection for the year to 4.3 percent and 4.7 percent for the third and fourth quarters of the current financial year.
Egg prices rose 11 percent during the month, while those of fruits and vegetables rose 7 percent, according to the statement. However, the price of pulses and poultry declined.
- Prices of primary articles rose 1.6 percent.
- Prices of food articles rose 1.8 percent
- Prices of fuel and power rose 1.6 percent
- Prices of manufactured products rose 0.2 percent