Inflation declines to 7.24% due to lower vegetable prices

Dec 14 2012, 16:44 IST
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Food inflation, as a category, rose to 8.5 per cent during the month, from 8.32 per cent a  year ago. Food articles have 14.3 per cent share in the WPI basket. (Reuters) Food inflation, as a category, rose to 8.5 per cent during the month, from 8.32 per cent a year ago. Food articles have 14.3 per cent share in the WPI basket. (Reuters)
SummaryVegetables prices decreased by 1.19 per cent in November this year.

prices, however, shot up by 72.20 per cent and 17 per cent respectively year on year in November this year.

This is compared to a decline of 9.31 per cent and 35.15 per cent in the same period last year.

Wheat turned expensive by 23.19 per cent in November from a decline of 4.86 per cent in the same month a year ago. Cereals became dearer by 15.85 per cent from a rise of 2.15 per cent in the same month last year.

Pulses and eggs, meat and fish became costlier by 19.10 per cent and 14.19 per cent in November. These food items also saw a price surge by 14.96 per cent and 11.40 per cent respectively in November last year.

For the fuel and power category, inflation moderated to 10.02 per cent during the month from 15.48 per cent in November 2011. However, diesel inflation increased by 14.60 per cent last month.

In the manufactured items category, prices of cotton textiles, man-made textile, iron and steel, paper products besides rubber and plastic products rose relatively at a lower pace compared to the same month of the previous year.

The rate of price rise in the manufactured products was 5.41 per cent in November, as against 8.17 per cent in the corresponding month of last year.

Inflation for September was revised upwards to 8.07 per cent from 7.81 per cent as per provisional estimates.

India's November inflation lowest in 10 months

(Reuters): India's wholesale inflation cooled to its weakest pace in 10 months in November, a positive sign for the struggling economy but probably not a big enough slowdown to persuade the central bank cut interest rates next week.

The wholesale price index (WPI), India's main inflation gauge, rose 7.24 percent from a year earlier, below expectations for a rise of 7.6 percent and below October's 7.45 percent.

An easing in annual fuel and manufacturing inflation helped rein in price pressures. "I don't think the RBI will be in a position to reduce policy rates on Dec. 18," said Rupa Rege Nitsure of Mumbai's Bank of Baroda. "But, the probability of a rate reduction in the month of January has now gone up."

India's 1-year overnight index swap fell around 3 basis points after Friday's data.

The inflation data comes after a spike in industrial outputin October and data indicating that infrastructure output and investment is picking up,

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