New Delhi: India’s annual wholesale price-based inflation (WPI) hit a decade high of 14.23 per cent in November, mainly due to rising prices of mineral oils, base metals, crude petroleum and natural gas.
WPI inflation has remained in double digits for eight consecutive months starting April. Inflation rate in October this year was 12.54 percent, while in November 2020 it was 2.29 percent.
In a statement on Tuesday, the Ministry of Commerce and Industry said, “The higher rate of inflation in November 2021 is primarily due to increase in prices of mineral oils, basic metals, crude petroleum and natural gas, chemicals and chemical products, food products and other products. etc. as compared to the same month of the previous year.”
Inflation in the fuel and power basket rose to 39.81 per cent in November, as against 37.18 per cent in October. The food index rose more than double to 6.70 per cent from 3.06 per cent in the previous month.
Crude petroleum inflation stood at 91.74 per cent in November, as against 80.57 per cent in October. However, manufactured goods registered a decline of 11.92 per cent as compared to 12.04 per cent in October.
Data released on Monday showed retail inflation based on the Consumer Price Index (combined) rose to a three-month high of 4.91 per cent in November from 4.48 per cent a month ago, as food prices picked up.
The gap between retail and wholesale price-based inflation has widened in recent months as many companies and retailers struggle to absorb rapidly rising costs that threaten their bottom lines.
Consumer Price Index (CPI) based inflation, however, remained in the Reserve Bank of India’s comfort zone. The government has ordered the central bank to keep inflation at 4 per cent (+/- 2 per cent).
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