Wholesale price inflation slowed to a 21-month low in November on the back of moderating food and manufactured products inflation, providing relief from stubborn price pressures.
Data released by the ministry of commerce and industry showed inflation, as measured by the Wholesale Price Index (WPI), rose an annual 5. 9% in November, slower than the previous month’s 8. 4%.
When compared to the same month last year, the costs of food items, basic metals, textiles, chemicals and chemical products, and paper and paper products all decreased, which significantly lowered the inflation rate in November 2022. WPI-based inflation had eased to single digit in October after ruling in double digits for 18-months in a row. The most recent data was released shortly after retail inflation figures, which in November decreased to an 11-month low of 5.9% as a result of moderating food costs and a favourable base effect. After 10 months, retail inflation has stabilised below the Reserve Bank of India's 6% upper tolerance zone.
Economists said the RBI is expected to tighten rates but at a less aggressive pace given the cooling in price pressures.