Inflation based on Wholesale Price Index rose to an eight-month high of 3.93% in November due to a sharp rise in onion prices and costlier seasonal vegetables, according to data released by the government on Thursday. The figure for October was 3.59%, and it was 2.6% in September.
The wholesale price index reflects the change in prices of goods bought and sold in the wholesale market. In a poll conducted by Reuters, economists had forecast that the inflation rate would increase to 3.78%.
The price of onions rose a mammoth 178.19% in November on an annual basis, while the price of seasonal vegetables rose to 59.80%, as against 36.61% in October.
While the index for ‘primary articles’ rose by 1.6% to 135.6, the index for the ‘fuel and power’ category rose by 1.6% to 95. The index for manufactured products, which carries the most weight in calculating the wholesale price index, rose by 0.2%.
Data released by the Central Statistics Office on Tuesday showed that retail inflation in India rose to a 15-month high of 4.88% in November, from 3.58% in October. Rising food prices due to heavy rain in November was one of the factors behind the increase.