Farmers sort out harvested onions near Chandwad, Maharashtra. (Photograph: Kuni Takahashi/Bloomberg)

WPI Inflation Falls To 4.64% In November On Softening Food Prices

Inflation based on wholesale prices fell to a three-month low of 4.64 percent in November, as prices of food articles, especially vegetables, softened.

The Wholesale Price Index-based inflation stood was 5.28 percent in October and 4.02 percent in November last year.

Food articles witnessed softening of prices with deflation at 3.31 percent in November, according to the government data released. The figure was 1.49 percent in October.

Vegetables, too, became cheaper with deflation at 26.98 percent in November, compared to 18.65 percent in the previous month.

Also read: CPI Inflation Eases On Lower Food And Fuel Prices

Inflation in the 'fuel and power' basket in November continued to rule high at 16.28 percent, but was lower than 18.44 percent in October. This was on account of lowering of prices of petrol and diesel.

Individually, in petrol and diesel it was 12.06 percent and 20.16 percent, respectively, and for liquified petroleum gas it was 23.22 percent during October.

Potato prices continued to rule high among the food articles, with 86.45 percent inflation in November. While onion witnessed deflation of 47.60 percent; the same for pulses stood at 5.42 percent.

Data released earlier this week showed that the retail or consumer price index-based inflation for November also fell to a 17-month low at 2.33 percent.

The Reserve Bank of India mainly takes into account retail inflation data while formulating monetary policy.

RBI kept interest rates unchanged, but held out a promise to cut them if the upside risks to inflation do not materialise in its fifth monetary policy review for the fiscal, released last week.

The central bank lowered retail inflation projection to 2.7-3.2 percent for the second half of the current fiscal, citing normal monsoon and moderate food prices.

Also read: What Is Weighing Down Food Inflation In India?