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LATEST NEWS UPDATES | WPI inflation surges to 14-month high of 7.52% -Somesh Jha

WPI inflation surges to 14-month high of 7.52% -Somesh Jha

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published Published on Dec 16, 2013   modified Modified on Dec 16, 2013
-The Business Standard


Food prices rise 19.93% year-on-year in November

The wholesale price inflation continued to show an uptick in November as it casts a shadow over possibility of a rate cut by the Reserve Bank of India in its upcoming monetary policy review.

The Wholesale Price Index (WPI), a measure of inflation at wholesaler's level, rose to 7.52% in November from 7% a month ago mainly due to continued rise in vegetable prices. This takes the wholesale price inflation to a 14 month high.

In another worrying trend, the inflation number for September was revised sharply upwards to 7.05% from earlier estimate of 6.46%. In the previous month, the final estimate for August was also changed to 6.99% from 6.10% reported earlier.

The prices of vegetables went up by 95.25% in November against a price rise by 78.38% in the previous month, marked by a rise in the prices of potato this time.

The inflation of potato stood at 26.71% against a decline in prices by 1.21% a month ago. The rate of price rise in onions declined but remained high as it stood at 190.34% in November against 278.21% in October this year.

This took the food inflation to 19.93% from 18.19% a month ago. The prices of manufactured items, meanwhile, moved upwards in November, too, a trend being witnessed since August. The inflation for manufactured products stood at 2.64% in November from 2.5%.

After declining in the previous month, inflation for fuel and power products rose to 11.08% from 10.33% in October. High speed diesel saw a rate of price rise standing at 15.65% in November compared to 14.66%. Meanwhile, the cost of petrol rose by 4.42% from 5.27% in the previous month.

Inflation

This is the last set of data before the RBI's monetary policy review on Wednesday. Before this, official data showed that the Consumer Price Index (CPI) accelerated to an all-time high of 11.24% in November compared to 10.17% in October.The RBI, in its earlier monetary policy in October, had raised the repo rate by 25 bps to 7.75% due to worryingly high retail and wholesale inflation.


The Business Standard, 16 December, 2013, http://www.business-standard.com/article/economy-policy/wpi-inflation-surges-to-14-month-high-of-7-52-113121600238_1.html


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