Wholesale inflation, measured by the Wholesale Price Index (WPI), moderated to 1.89 per cent in November, down from 2.36 per cent in October, according to data released by the Ministry of Commerce and Industry on Monday.
Speaking of the month-on-month change, the fair bit of moderation is mainly driven by a 1.2 per cent decrease in primary articles, bringing the November’s index to 197.9 from 200.3 in October.
The Wholesale Price Index for fuel and power saw an increase of 0.41 per cent, manufactured products also witnessed a gain of 0.35 per cent.
The Food Index consisting of ‘food articles’ from primary articles group and ‘food product’ from manufactured products group decreased from 201.2 in October, 2024 to 200.3 in November, 2024. The rate of inflation based on WPI Food Index decreased from 11.59% in October, 2024 to 8.92% in November, 2024.
Out of all the vegetables, potatoes saw the highest rise of 82.79 per cent on a year-on-year basis in November.
“Positive rate of inflation in November, 2024 is primarily due to increase in prices of food articles, food products, other manufacturing, textiles, machinery & equipment, etc,” said the Ministry of Commerce and Industry in a statement.
The recent easing in wholesale inflation follows the slowing down of retail inflation, which breached the RBI’s bracket and hit 6.21 per cent in October and came down to 5.48 per cent in November.
Wholesale inflation tracks the changes in prices at the wholesale level, before goods reach the consumer, it reflects the average price change in goods sold in bulk, including food, fuel, and manufactured products.
Unlike retail inflation, which captures the price changes felt by consumers, wholesale inflation provides insight into cost trends impacting producers and distributors.
A sharp rise in wholesale prices can indicate supply chain disruptions or increasing production costs, while a decline may suggest reduced demand or stability in supply.
Movement of Wholesale Inflation in FY25
