India’s wholesale price index (WPI)-based inflation for November eased to 1.89 per cent on an annual basis, down from 2.36 per cent in October, according to the Ministry of Commerce and Industry data released today.

The annual inflation rate for Primary Articles in the Wholesale Price Index (WPI) declined to 5.49 per cent in November, down from over eight per cent in the previous month. The data showed that inflation in food items fell to 8.92 per cent in November, compared to 11.59 per cent in October. This was driven by a significant drop in the prices of vegetables, which fell by 28.57 per cent as against 63.04 per cent in October. Onion prices also decelerated sharply, registering a fall of 2.85 per cent during the month, down from over 39 per cent in the previous month. The fuel and power category witnessed further deflation of 5.83 per cent in November.

Meanwhile, in the manufactured products category, inflation rose to 2 per cent, up from 1.5 per cent in the previous month.
Earlier last week, India’s retail inflation, based on the consumer price index (CPI), had eased to 5.48 per cent in November, within the tolerance band of the Reserve Bank of India (RBI).

The Wholesale Price Index or WPI measures the change in prices of goods sold and traded in bulk by wholesale businesses with other companies. Unlike the CPI, which tracks prices of goods and services purchased by consumers, WPI tracks factory gate prices and retail prices.