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LATEST NEWS UPDATES | Wholesale inflation surges to 30-year-high at 14.23 per cent

Wholesale inflation surges to 30-year-high at 14.23 per cent

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published Published on Dec 15, 2021   modified Modified on Dec 15, 2021

-The Telegraph

The November figures stand out vis-a-vis a modest 2.29 per cent in the same month last year

Wholesale inflation spiked to a 30-year high at 14.23 per cent in November — a level that hasn’t been seen since India embraced economic liberalisation in 1991.

The surge was led by a vault in the prices of food, fuel and power, basic metals and chemical products.

Inflation based on the wholesale price index (WPI) — a gauge that economists and policy makers watch closely — rose by 12.5 per cent in October and a revised estimate of 11.8 per cent for September.

It was at a modest 2.29 per cent in the same month last year.

The stratospheric leap in November indicates that inflation isn’t going to be as benign as the Reserve Bank of India policy makers tried to suggest in their statement issued after the December 8 meeting where they decided to hold interest rates in order to give the economy the chance to recover after 7.3 per cent contraction in GDP in the previous fiscal.

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The Telegraph, 15 December, 2021, https://www.telegraphindia.com/business/wholesale-inflation-surges-to-30-year-high-at-14-23-per-cent/cid/1843363


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