asotIndia’s wholesale price inflation accelerated to 0.58% in November after decelerating for several months as vegetable prices including onions picked up. In October, WPI based inflation stood at 0.16%.
Data released by the industry department showed food inflation accelerated to 11.08% in November from 9.8% a month ago as onion prices shot up 172.3%. However, inflation for manufactured items continued to be in the negative zone (-0.84%) for the third consecutive month, signaling lack of pricing power of producers in a decelerating economy. India’s economic growth has slowed down to a six and half year low at 4.5% in September quarter, owing to a demand slump.
The Reserve Bank of India (RBI) in a surprise move earlier this month paused its rate cut cycle amid rising inflation risk. However, the Monetary Policy Committee said that it would maintain the “accommodative stance as long as it is necessary” but made it clear that there is a need to optimize the impact of rate reductions.
Retail inflation surged 5.54% in November as food price inflation measured by the Consumer Food Price Index rose 10% in November from 7.89% in October. Vegetable prices surged 36% in November from a year ago.
News Source:- Livemint