The CPI for November struck a 15-month high of 4.88%.
New Delhi : Inflation based on wholesale prices accelerated to an eight-month high of 3.93 per cent in November due to a sharp rise in onion prices and costlier seasonal vegetables, federal government data showed on Thursday. Calculated on the Wholesale Price Index (WPI), the inflation was 3.59 per cent in October this year, and 1.82 per cent in November 2016. The November figure is the highest so far this fiscal and the previous high was when the WPI touched 3.85 per cent in April.
Kitchen staple onions logged a whopping 178.19 per cent inflation last month. For seasonal vegetables too, the rate of price rise in November was high at 59.80 per cent, as against a 36.61 per cent inflation in October. The latest data comes within days of the publication of retail inflation numbers, based on the Consumer Price Index (CPI), which hit a 15-month high of 4.88 per cent in November.
The Reserve Bank of India (RBI) had warned last week that there may be a spike in prices in the coming months. The WPI data, however, revealed that inflation in case of protein rich eggs, meat and fish slowed to 4.73 per cent in November, as against 5.76 in the preceding month. Inflation in the overall food basket (including manufactured items) increased to 4.1 per cent in Novemb from 3.23 per cent in October. Industry body ASSOCHAM said the continuous increase in petrol and high-speed diesel prices due to a rise in global crude oil rates has to be taken care of by policymakers as it may impact the nation’s import bill and, subsequently, exchange rates. “
“And it may have [a] negative impact on input prices for the industry that has already started to feel the pressure on its profitability,” it said. Inflation in the ‘fuel and power’ segment was recorded at 8.82 per cent in November, as against 2.11 per cent a year ago. In October this year, it was 10.5 per cent. Ratings agency CARE has said that the upside risks to inflation could emerge from a lower Rabi crop, as the area under cultivation this year is lower than what it was last year.
