Wholesale inflation surges to 14.23% in Nov as crude, metal prices go up

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

Aditi Nayar, Principal Economist at ICRA, said, “We were looking at a WPI inflation of about 12.1 percent for this month and while manufacturing is more or less in line with expectations, it is everything else which has jumped a lot. So the non-core parts of the WPI has seen a very sharp jump, food and non-food, minerals, crude and fuel and power, all of these categories have come in significantly higher than what we were expecting.”

On December numbers, Nayar said, “Some correction in December, yes. But it has still remained in double-digits, at least in December and possibly in January. Back into single digits now possibly only in February and March. So, (that's) the process of the base effect catching up, etc. I think, that is going to (get) delay(ed), how soon we come back to single digits as far as the WPI is concerned. We are looking at a very high average for this year on the WPI, at least I would say 11 percent for this year.”

Data released on Monday showed retail inflation based on Consumer Price Index (Combined) rose to three-month high of 4.91 percent in November, from 4.48 percent a month ago, as food prices inched up.

The Consumer Price Index-based inflation, however, remained within the comfort zone of the Reserve Bank of India. The government has mandated the central bank to keep inflation at 4 per cent (+/- 2 percent).