Today the string of worrisome Government data showed the inflation based on Wholesale Price Index (WPI) accelerated to 3.93% in November. The sharp rise in onion prices and costlier seasonal vegetables resulted in this inflation. In November 2016, the WPI was 1.82% and in October and November this year, it was 3.59% and 3.93% respectively.
Onion witnessed a whopping 178.19% rise in inflation last month on annual basis. The seasonal vegetables got a hike of 23.19% resulting in 59.80% in November compared to 36.61% in October. The inflation for the protein rich foods like eggs, meat and fish, however, crawled at a slower pace resulting in a growth of 4.73%.
According to the data released by the Commerce Ministry, WPI inflation for food articles increased to 6.06% in November. The manufactured goods pulled back 0.01% resulting in 2.61% compared to 2.62% last month.
The retail inflation based on Consumer Price Index hit a 15 month high of 4.88% in November. The industrial production slowed down by 2.2% in October.
The Economists in a statement pointed out the sharp increase in the inflation justifying the Reserve Bank of India’s (RBI) statement on last week’s monetary policy which left the interest rates unchanged. The RBI estimated the retail inflation will be 4.3 to 4.7% in the second half of the fiscal.