New Delhi, Dec 14 - An exponential rise in food and fuel prices especially those of onions and diesel pushed India's annual rate of inflation based on wholesale prices higher to 3.93% for November, official data showed.
According to data from the Ministry of Commerce and Industry, the wholesale price index (WPI) accelerated to 3.93% in November from 3.59% during October and 1.82% during the corresponding month of 2016.
Reacting to the data, India Inc. said the rise in inflation was mainly driven by vegetables, onions, eggs, meat and fish, minerals, petrol and high speed diesel due to a decline in production and the resultant fall in the supply side.
On a sequential basis, the expenses on primary articles, which constitute 22.62% of the WPI's total weightage, edged higher by 5.28%, from an increase of 3.33% in October.
The prices of food articles rose by 6.06% from a rise of 4.30% in October.
In terms of food prices, the YoY (Year-on-Year) wholesale inflation rate for onions was higher by 178.19%, whereas for potatoes it plunged by (-) 40.73%.
In contrast, the overall vegetable prices in November rose by 59.80%, against a fall of (-)17.31% in the same month a year ago.
As per data, wheat became cheaper by (-) 5.75% on YoY basis and the prices of pulses came down by (-) 35.48%, but paddy became dearer by 2.90%.
On the other hand, protein-based food items such as eggs, meat and fish became expensive by 4.73% during the month under review.
Prices of the other major group under the WPI, manufactured products, which comprise nearly 64.23% of the index, recorded a 2.61% rise.
The sub-category of manufactured food products registered a rise of 0.47%.
Similarly, fuel and power prices accelerated by 8.82%.
Product-wise, the price of high-speed diesel rose by 11.63% during November while that of petrol climbed by 10.57% and for LPG by 31.30%.
Expressing concern over the rise in wholesale inflation, industry body Assocham's Secretary General D.S. Rawat said: "The continuous increase in the prices of petrol and high speed diesel due to rise in prices of crude oil globally have to be taken care of by the policy makers since it may have impact on import bills and subsequent impact on exchange rates."
"... it may have negative impact on input prices for the industry which has already started to feel the pressure on its profitability."