According to data issued by the commerce ministry on Monday, the November wholesale pricing index (WPI)-based inflation rate in India decreased to 1.89 percent, mostly as a result of rising prices for textiles, machinery & equipment, food items, and other manufacturing. In October of this year, WPI inflation was 2.36%, up from 0.39 percent in November of 2023. In comparison to October 2024, the WPI’s month-over-month change in November 2024 was (-)0.06%.
According to the Ministry of Commerce and Industry’s monthly data, the index for primary items, which was 200.3 in October 2024, dropped 1.20 percent to 197.9 in November. The Fuel & Power index rose from 146.5 (provisional) in October to 147.1 (provisional) in November, a 0.41 percent gain. In November 2024, the manufactured products index climbed 0.35 percent to 143.0 (provisional).
Additionally, according to the Ministry of Commerce & Industry’s announcement, food item inflation decreased to 8.63% in November from 13.54% in October. From 8.09 percent the month before, the primary article inflation rate fell to 5.49 percent. In November, the gasoline and electricity inflation rate was -5.83 percent, compared to -5.79 percent in October. Additionally, the inflation rate for manufactured goods increased from 1.50 percent in October to 2.00 percent.
According to the non-food articles, WPI inflation in November was -0.98%, down from -1.71 percent in the previous month. Inflation for minerals increased from 1.87 percent in October to 5.89 percent in November. In November, crude petroleum and natural gas reported wholesale inflation of -7.11 percent and -7.72 percent, respectively.
In contrast, ICRA predicts that, even with a favorable base, headline WPI inflation will increase from 1.9% in November 2024 to 2.5% to 3.0% in December 2024 (+0.9%) from 0.4% in November 2023.
