WPI deflation narrows to -0.32% in Nov

Wholesale price inflation remained in negative territory for a second straight month in November, as prices of food articles, mineral oils, crude petroleum and natural gas declined, official data showed on Monday.

- Dhirendra Kumar [e-mail]

Wholesale Price Index-based (WPI) inflation eased to -0.32% year-on-year in November, down from 2.16% a year ago, but rose from -1.21% in October, data released by the Department for Promotion of Industry and Internal Trade (DPIT) showed.

The negative reading reflects a sharp cooling in wholesale prices especially in the last two months, driven mainly by supply-side factors. Food prices, which have a large weight on the WPI, fell 2.6% year-on-year in November, led by steep declines in vegetables, pulses and onions, even as prices of cereals and milk remained relatively firm.

Fuel and power prices also stayed in deflation on an annualized basis, declining 2.27%, driven by softer global energy