WPI inflation spikes to 14.23 pc in Nov as crude, metal prices harden

The wholesale price-based inflation surged to more than a decade high of 14.23 per cent in November, mainly due to hardening of prices of mineral oils, basic metals, crude petroleum and natural gas.

WPI inflation has remained in double digits for eight consecutive months beginning April. Inflation in October this year was at 12.54 per cent, while in November 2020 it was at 2.29 per cent.

"The high rate of inflation in November 2021, is primarily due to rise in prices of mineral oils, basic metals, crude petroleum & natural gas, chemicals and chemical products, food products etc as compared to the corresponding month of the previous year," the Commerce and Industry Ministry said in a statement on Tuesday.

Inflation in fuel and power basket was higher at 39.81 per cent in November, as against 37.18 per cent in October. The food index more than doubled to 6.70 per cent as compared to 3.06 per cent in the previous month.

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

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

The Consumer Price Index (CPI) 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 per cent).