Wholesale price index (WPI)-based inflation rose to an eight-month high
in November as vegetables, onion and fuel became more expensive,
indicating that retail prices could see a further uptick in the coming
months.
Though wholesale prices are no longer monitored by the RBI for fixing
interest rates, they provide an indication of possible trends in retail
inflation.
In its Monetary Policy statement on December 6, the RBI had marginally
raised its inflation forecast for the second half of the fiscal and
analysts expect wholesale prices to be on the rise as well. Official
data released on Thursday showed that WPI inflation rose by it sharpest
pace this fiscal to 3.93 per cent in November. It had been 3.59 per cent
in October this year, and 1.82 per cent in November last year.
Prior to this, WPI inflation expanded by its sharpest pace in March, at
5.11 per cent. Meanwhile, the rate of inflation based on the WPI Food
Index rose to 4.1 per cent in November from 3.23 per cent in October.
No comments:
Post a Comment