WPI inflation in India falls to 1.89% in November 2024

India’s wholesale price index (WPI) inflation has dropped to 1.89% in November 2024, showing a decrease from 2.36% recorded in October, according to the Ministry of Commerce and Industry. The month-on-month change in WPI was a slight decline of 0.06%. Key contributors to the inflation rate included price rises in food articles, textiles, and machinery. The provisional annual rate of WPI inflation for November 2024 stands at 1.89%, reflecting a drop compared to 2.36% from the previous month.

The official WPI for all commodities, based on a 2011-2012 index of 100, declined marginally to 156.0 from 156.1 in October. While the index for manufactured products, which holds a weight of 64.23%, showed some resilience with a 0.35% increase to 143.0, the sector of ‘Manufacture of Textiles’ remained stable at 135.9. Conversely, the ‘Manufacture of Wearing Apparel’ witnessed a minimal decrease to 153.8 from 153.9 in October.

Looking more closely at the primary articles, which encompass 22.62% of the WPI, prices fell by 1.20% to 197.9 in November from 200.3 the previous month. Meanwhile, the fuel and power segment, accounting for 13.15%, saw an increase of 0.41%, rising to 147.1 from 146.5 in October. The Office of the Economic Adviser, operating under the Department for Promotion of Industry and Internal Trade, indicated that the positive inflation rate in November was largely driven by increases in food articles, food products, and other manufacturing categories, alongside textiles and machinery equipment.

This overall economic backdrop suggests a complex interplay of market forces, influencing both growth and inflation in India’s economic landscape as the country moves into the close of 2024.