India witnessed a notable shift in wholesale price inflation, marking a departure from the deflationary trend observed since March of this year. According to the latest data unveiled by the Commerce and Industry Ministry on Thursday, November recorded a 0.26 percent increase, signifying the first emergence from the deflationary zone.
This surge in Wholesale Price Index (WPI) inflation to its highest level in eight months contrasts with the preceding months' decline in wholesale prices. In October 2023, WPI inflation stood at -0.52 percent, a stark contrast to the 6.12 percent recorded in November 2022.
The upturn in WPI can be attributed to a 1.9 percent upswing in the food index, primarily fueled by a substantial 16.45 percent month-on-month surge in vegetable prices. Among them, onion prices played a leading role with a remarkable 41.3 percent jump.
The revelation in WPI data aligns with the trajectory of the country's retail inflation, which attained a three-month peak at 5.55 percent in November. The Reserve Bank of India (RBI), crucially monitoring retail inflation to gauge the actual prices paid by consumers, employs this data for decision-making related to monetary policy.
(With Agency Inputs)
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