Context: Overall inflation in wholesale prices cooled to a three-month low of 1.9%
Relevance: GS 3 (Inflation)
Overall Inflation:
- Wholesale price inflation eased to 1.89% in November, compared to 2.4% in October.
Food Price Trends:
- Food price inflation declined to 8.9% from 11.6%.
- Vegetable inflation fell sharply to 28.6% from over 63%.
- Potato prices surged by 82.8%, while onion inflation dropped to 2.85%.
Primary Articles and Fuel:
- Inflation for primary articles reduced to 5.5% from 8.1%.
- Prices in the fuel and power category declined by 5.83% year-on-year.
Manufactured Products:
- Inflation for manufactured products rose to 2%, driven by higher prices for food products, furniture, and pharmaceuticals.
Economic Impact:
- Rising prices of food and manufacturing inputs are likely to squeeze industry profit margins, indicating economic challenges ahead.
