By India Blooms News Service Dec 14, 2022
New Delhi/UNI: Indias wholesale inflation eased further to 5.85% in Nov 2022 as against 8.39% recorded in the previous month, according to official data released on Wednesday.
Decline in rate of inflation in November, 2022 is primarily contributed by fall in prices of food articles, basic metals, textiles, chemicals chemical products and paper paper products as compared to the corresponding month of the previous year, said the press release from Ministry of Commerce and Industry.
After remaining in double-digit for almost 19 months, the wholesale price index (WPI)-based inflation had come in single-digit in October driven by all three broad segments namely primary articles, fuel power and manufactured products.
The WPI captures the average movement of wholesale prices of goods and is primarily used as a GDP deflator. It reckons only basic prices and does not include taxes, rebate/trade discounts, transport and other charges.
Indias retail inflation measured by consumer price index (CPI) has also softened falling to an 11-month low of 5.88% in Nov 2022 primarily on the back of decline in food and vegetable prices.
High inflation has been one of the major concerns of the government and the Reserve Bank of India (RBI).
The central bank has been raising policy repo rate since May this year to contain price rise
After remaining elevated for months, both CPI and WPI inflation have now fallen below 6 per cent.
The fall in commodity and food prices are the major reasons for the WPI cooling off. This data is also in line with the CPI inflation released earlier this week.
The fall in WPI inflation needs to be consistent and durable for the policymakers to take note of it and change their view and soften their stance on it, said Raheel Shah, Director at BDR Pharmaceuticals.
WPI cooling off will percolate well in terms of ease in the prices of industrial goods, he added.