Economy / Wholesale inflation rises to 12-year-high of 14.23% in November

NEW DELHI: Wholesale price inflation (WPI) jumped to 12-year high of 14.23 per cent in the month of November, data released by government showed on Tuesday.

The WPI figure is the highest since April 2005. In October, the number had jumped to 5-month high of 12.54 per cent.

Rising inflationary pressure has been a matter of concern since the past few months. The rise in WPI numbers can majorly be attributed to rise in manufacturing and food prices. Besides, soaring prices of mineral oils, basic metals, crude petroleum and natural gas has also been a major factor.

"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 an official release.

Wholesale fuel and power prices rose 39.81 per cent on the year versus 37.18 per cent in October, while manufactured product prices rose 11.92 per cent, against 12.04 per cent in the prior month.

Wholesale prices of food accelerated at a 6.7 per cent pace in November from a year earlier, versus 3.06 per cent the previous month.

Crude petroleum inflation was at 91.74 per cent during the month under review, as against 80.57 per cent in October. However, manufactured items saw moderation at 11.92 per cent, from 12.04 per cent in October.

Interestingly, this is the 8th consecutive month where the WPI figure has remained in double digits.

The gap between retail and wholesale price-based inflation has widened in recent months as many companies and retailers are struggle to absorb galloping input costs that threaten their bottom lines.

Data released by Centre on Monday showed a spike in retail inflation figure to 4.91 per cent for the November, as against 4.48 per cent in October. However, it has remained within the Reserve Bank of India's (RBI) target of 2-6 per cent.

The Reserve Bank mainly considers CPI data while arriving at its bi-monthly monetary policy decisions.