India's wholesale price inflation rises for the first time in FY24; hits 0.26% in November

The annual rate of inflation based on the wholesale price index (WPI – Base 2011-12 = 100) rose to an 8-month high of 0.26 per cent in November 2023, provisional figures released by the commerce ministry showed.

The wholesale price inflation turned positive for the first time since March this year  due primarily to increase in the prices of food articles, minerals, machinery and equipment, computer, electronics and optical products, motor vehicles, other transport equipment and other manufacturing etc, says a commerce ministry release.

Inflation rate based on the WPI index was 0.53 per cent higher in November 2023 compared to the previous month. 

Inflation rate for the primary articles group, which has a weight of 22.62 per cent in the wholesale price index, increased by 1.30 per cent in November 2023 as prices of food articles increased by 2.62 per cent compared to the previous month. Prices of non-food articles (-0.24 per cent), minerals (-0.41 per cent) and crude petroleum and natural gas (-4.79 per cent) declined in November, 2023.

Inflation rate for the fuel and power group (weight lf 13.15 per cent in WPI) increased by 0.78 per cent month-on-month in November as prices of electricity (9.93 per cent) increased. Prices of mineral oils (-1.99 per cent) declined in November 2023 compared to October 2023.

Inflation rate for the manufactured products group (weight of 64.23 per cent) increased by 0.07 per cent. Out of the 22 groups for manufactured products, eight groups witnessed an increase in prices, 10 groups witnessed a decrease in prices whereas four groups remained unchanged. Some of the important groups that showed month-over-month increase in prices are food products, motor vehicles, trailers and semi-trailers, fabricated metal products (except machinery and equipment), wood and wood  products (including cork) and other manufactured products. Some of the groups that witnessed a decline in prices in November are basic metals, electrical equipment, textiles, other non-metallic mineral products; rubber and plastic products etc. 

Inflation rate for the food products group (weight 24.38 per cent),  consisting of 'food articles' from the primary articles group and 'food products' from the manufactured products group, based on the food price index, increased to 4.69 per cent in November compared to 1.07 per cent in October.

The final inflation rate (revised) based on the updated wholesale price index for all commodities for September 2023 stood at 0.07 per cent.