- Wholesale price inflation rose to 3.93% last month
- Onion witnessed a whopping 178.19% rise in inflation
- Vegetable prices rose 59.80%
Onion, a kitchen staple, witnessed a whopping 178.19 per cent rise in inflation last month on an annual basis. Vegetable prices too spiked 59.80 per cent on an annual basis.
Aditi Nayar, principal economist at ICRA Limited, said the spike in vegetable prices led by onions and tomatoes was the chief factor that pushed up the primary food inflation to a 16-month high of 6.1 per cent in November 2017.
Rising commodity prices resulted in an uptick in inflation for minerals, crude petroleum as well as some sub-sectors of non-food manufactured products in November 2017, she said. The index for fuel and power also showed a climb of 8.82 per cent.
Data released earlier this week showed retail or consumer inflation in November breached the medium-term target of 4 per cent of Reserve Bank of India's (RBI). This could put pressure on it to raise policy rates in 2018.
Last week, the RBI held rates unchanged, despite having faced some pressure to cut rates to aid growth. The central bank's increased concern about inflation has prompted it to hold rates since a trim in August.
The RBI has raised its inflation projection to between 4.3 per cent and 4.7 per cent for the six months ending in March 2018.