Inflationary woes: India’s WPI rises to 1.55% in Nov (Roundup)

New Delhi, Dec 14 : India’s annual rate of inflation based on wholesale prices jumped to 1.55 per cent in November from a rise of 1.48 per cent in October.

“The rate of inflation, based on monthly WPI, stood at 1.55 per cent (provisional) for the month of November, 2020 (over November, 2019) as compared to 0.58 per cent during the corresponding month of the previous year,” a Ministry of Commerce and Industry statement on WPI said.

On a sub-segment basis, prices of manufactured items remained at elevated levels with a rise of 2.97 per cent from 2.12 per cent reported for September and (-) 0.84 per cent recorded during October 2019.

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Similarly, the prices of fuel and power with a weightage of 13.15 per cent rose by (-) 9.87 per cent to (-) 10.95 per cent in October 2020.

“The index for this major group increased by (0.22 per cent) to 91.3 (provisional) in November, 2020 from 91.1 (provisional) for the month of October, 2020,” the statement said.

“Prices of ‘Mineral Oils’ (0.39 per cent) and ‘Coal’ (0.08 per cent) increased in November, 2020 as compared to October, 2020. Prices of electricity remain unchanged.

The expenses on primary articles, which constitute 22.62 per cent of the WPI’s total weightage, increased to 2.72 per cent. It had increased in a faster pace in October 2020 at 4.74 per cent.

However, the prices of food items rose on a slower rate at 4.27 per cent from 5.78 per cent reported for October 2020 and 7.19 per cent in September.

“The ‘Food Index’ consisting of ‘Food Articles’ from ‘Primary Articles’ group and ‘Food Product’ from ‘Manufactured Products’ group have decreased from 159.3 in October 2020 to 158.9 in November 2020,”.

“The rate of inflation based on WPI Food Index decreased from 5.78 per cent in October 2020 to 4.27 per cent in November 2020.”

On sub-segment basis, potato prices increased by 115.12 per cent in November against 107.70 per cent during October.

Overall, vegetable prices in November rose at a slower pace at 12.24 per cent against a rise of 25.23 per cent in October.

Similarly, pulses became dearer by 13.04 per cent last month. The prices had rise by 15.93 per cent in October.

“The WPI for November 2020 printed in line with our expectation, recording a mild uptick relative to October 2020, as higher core and fuel inflation was offset by a base-effect led cooling in the inflation for primary food articles, minerals, and crude petroleum,” said ICRA’s Principal Economist Aditi Nayar.

“The decline in the WPI food inflation in November 2020 partly reflected the correction in vegetable prices, as well as a high base, which will persist in December 2020.”

Sunil Kumar Sinha, Principal Economist, India Ratings and Research, said: “The wholesale inflation at 1.6 per cent in December 2020 continues to benign though it is inching up slowly. After remaining in negative territory the wholesale inflation moved into positive territory in the month of August 2020.”

“Due to a combination of base effect and good Kharif harvest the food grains are witnessing deflation. But the same can be said about the pulses where the inflation is still in double digit. Some of the other protein rich items such as egg and meat are also witnessing high inflation.”

“At the broad level the category of fuel and power is still benign but manufactured product inflation is inching up and with a weight of 64.2 per cent is the main driver of whole sale inflation.”

Disclaimer: This story is auto-generated from IANS service.

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