In November, India’s inflation hit 0.26 percent, the highest in eight months. Retail inflation rose 5.55 percent and wholesale 0.26 percent. The RBI maintained interest rates.
India’s inflation has taken two hits. After retail inflation rose in November, wholesale inflation hit its highest level in eight months. After seven months below zero owing to increased food costs, wholesale inflation jumped abruptly to 0.26 percent in November. WPI-based inflation has been below zero since April. It was -0.52% in October. Retail inflation rose to 5.55 percent in November from 4.8 percent in October, a four-month low.
Wholesale inflation rose.
In November 2023, food, minerals, machinery and equipment, computers, electronic and optical products, motor vehicles, other transport equipment, and manufacturing goods would drive inflation, according to the Ministry of Commerce and Industry. Food prices jumped 8.18 percent in November from 2.53 percent in October. Repo rate was unchanged by RBI.
According to official figures released earlier this week, food costs drove November retail price inflation to a three-month high of 5.55 percent. Bi-monthly monetary policy from the RBI maintained interest rates. November and December showed rising food prices.
Conclusion
In November, wholesale inflation in India hit 0.26 percent, the most in eight months. This follows a seven-month low of -0.26% owing to increased food prices. The Ministry of Commerce and Industry predicts November 2023 inflation will be driven by food, minerals, machinery, computers, electronics, motor vehicles, transport equipment, and manufactured goods. In November, food article inflation rose 8.18 percent from 2.53 percent in October. The RBI’s bi-monthly monetary policy has held interest rates unchanged, although food inflation increased in November and December.
