New Delhi. After retail inflation, there has been relief from wholesale price-based inflation (WPI Inflation) in November. It has come down to a three-month low. According to the Ministry of Commerce and Industry statement, inflation based on Wholesale Price Index (WPI) came down to 1.89 percent in November.

It was at 2.36 per cent in October. Whereas, it was at 0.39 percent in November last year. The retail inflation rate data came on December 12. The retail inflation rate decreased to 5.48 percent in November, which was 6.21 percent in October.

Wholesale inflation decreased due to which things becoming cheaper?

The prices of food items have come down in November. It was 13.54 per cent in October, which came down to 8.63 per cent in November. The inflation rate of vegetables fell from 63.04 per cent to 28.57 per cent. However, the price of potatoes did not come down. Its inflation rate jumped to 82.79 per cent.

There was relief in the case of onion and its inflation fell to 2.85 percent. When talking about the oil and power category, deflation continued. It was 5.83 percent in November as compared to 5.79 percent in October. At the same time, inflation of manufactured items increased from 1.50 percent to 2 percent.

There was also relief in retail inflation in November

Retail inflation data came last month (December 12). Retail inflation based on Consumer Price Index (CPI) fell from 6.21 percent in October to 5.48 percent in November. This fall was also due to cheaper food items. Food inflation fell from 10.9 percent to 9 percent in November.

However, a matter of concern for the RBI and the government is that retail inflation remained above 5 percent for the third consecutive month. The government has given the RBI the target of keeping the inflation rate within the range of 2 to 4 percent.

Why is food inflation decreasing

The biggest reason for the reduction in wholesale and retail inflation is the fall in the prices of food items. In fact, due to monsoon rains, the transportation of vegetables was badly affected in the month before November. Also, there were cases of damage to crops due to floods. Inflation is coming down due to better production of Kharif crops in November and increased arrival of vegetables in the market. This trend is expected to continue in the coming months as well.