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Inflationary woes: India's wholesale inflation rises to 1.55% in November

As per the data, the Consumer Food Price Index increased at a slower rate of 9.43 per cent in November from 11 per cent in October.

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"The 'Food Index' consisting of 'Food Articles' from 'Primary Articles' group and 'Food Product' from 'Manufactured Products' group have decreased from 159.3 in October 2020 to 158.9 in November 2020,". (Photo: Reuters)
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Cheaper food prices lowered India's sequential retail price inflation in November.

Sequentially, the Consumer Price Index (CPI), which gauges the retail price inflation, rose at a slower rate of 6.93 per cent in November from 7.61 per cent reported in October.

The data furnished by the National Statistical Office (NSO), CPI Urban rose to 6.73 per cent in November from 7.33 per cent in October, while CPI Rural increased to 7.20 per cent last month from 7.75 per cent in October.

As per the data, the Consumer Food Price Index, increased at a slower rate of 9.43 per cent in November from 11 per cent in October.

The CFPI readings measure the changes in retail prices of food products.

On a YoY inflation rate, prices of vegetables and pulses and products jumped by 15.63 per cent and 17.91 per cent, respectively, in November.

India's annual rate of inflation based on wholesale prices jumped to 1.55 per cent in November from a rise of 1.48 per cent in October.

"The rate of inflation, based on monthly WPI, stood at 1.55 per cent (provisional) for the month of November, 2020 (over November, 2019) as compared to 0.58 per cent during the corresponding month of the previous year," a Ministry of Commerce and Industry statement on WPI said.

On a sub-segment basis, prices of manufactured items remained at elevated levels with a rise of 2.97 per cent from 2.12 per cent reported for September and (-) 0.84 per cent recorded during October 2019.

Similarly, the prices of fuel and power with a weightage of 13.15 per cent rose by (-) 9.87 per cent to (-) 10.95 per cent in October 2020.

"The index for this major group increased by (0.22 per cent) to 91.3 (provisional) in November, 2020 from 91.1 (provisional) for the month of October, 2020," the statement said.

"Prices of 'Mineral Oils' (0.39 per cent) and 'Coal' (0.08 per cent) increased in November, 2020 as compared to October, 2020. Prices of electricity remain unchanged.

The expenses on primary articles, which constitute 22.62 per cent of the WPI's total weightage, increased to 2.72 per cent. It had increased in a faster pace in October 2020 at 4.74 per cent.However, the prices of food items rose on a slower rate at 4.27 per cent from 5.78 per cent reported for October 2020 and 7.19 per cent in September.

"The 'Food Index' consisting of 'Food Articles' from 'Primary Articles' group and 'Food Product' from 'Manufactured Products' group have decreased from 159.3 in October 2020 to 158.9 in November 2020,".

"The rate of inflation based on WPI Food Index decreased from 5.78 per cent in October 2020 to 4.27 per cent in November 2020."

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