India Wholesale Prices Rise 0.26%, More Than Forecast

(RTTNews) - India's wholesale prices increased for the first time in eight months in November, and at a faster-than-expected rate, data published by the National Statistical Office showed on Thursday.

The wholesale price index, or WPI, rose 0.26 percent year-over-year in November, reversing a 0.52 percent decline in October. Economists had expected a 0.08 percent slight increase for the month.

The upward trend was primarily due to the rises in prices of food articles, minerals, machinery and equipment, computers, electronics and optical products, motor vehicles, other transport equipment, and other manufacturing, the ministry said.

Food prices grew at a faster rate of 4.69 percent annually in November versus a 1.1 percent gain a month ago. Similarly, costs for primary articles climbed at an accelerated pace of 4.76 percent.

On the other hand, fuel and power charges declined more intensely by 4.61 percent, and those for manufactured products slid by 0.64 percent.

Data released earlier this week showed that India's consumer price inflation rose to 5.55 percent in November from 4.87 percent in the prior month.

However, inflation remained just within the central bank's tolerance band of 2-6 percent.

Last week, the Reserve Bank of India left its benchmark rates unchanged for the fifth straight session, citing the risk of food price shocks derailing the disinflation process.