WPI inflation at 14.23% increases to more than a decade high

The wholesale price-based inflation increased to more than a decade high of 14.23% in November, mainly due to hardening of prices of mineral oils, basic metals, crude petroleum and natural gas. WPI inflation has remained in double digits for eight consecutive months beginning April. Inflation in October this year was at 12.54%, while in November 2020 it was at 2.29%.

Inflation in fuel and power was higher

“The high rate of inflation in November 2021, is primarily due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, chemicals and chemical products, food products etc as compared to the corresponding month of the previous year,” the Commerce and Industry Ministry said in a statement on Tuesday.

Inflation in fuel and power basket was higher at 39.81% in November, as against 37.18% in October. The food index increased by more than twice to 6.70% compared to 3.06% in the previous month.

During the month under review, crude petroleum inflation was at 91.74% as compared to 80.57% in October. However, manufactured items moderated at 11.92% from 12.04% in October.

According to the data released on Monday, retail inflation based on Consumer Price Index (Combined) increased to three months high of 4.91% in November, from 4.48% a month ago, as food prices inched up.

The Consumer Price Index (CPI) based inflation, however, remained within the comfort zone of the Reserve Bank of India. The government has mandated the central bank to keep inflation at 4%.