India's wholesale price inflation eased more-than-expected in November to the lowest level in nearly two years, largely driven by a sharp slowdown in the price growth of food items, provisional data from the Ministry of Commerce and Industry revealed on Wednesday.
The wholesale price index climbed 5.85 percent year-over-year in November, slower than the 8.39 rise in October. Economists had expected inflation to ease to 6.50 percent.
Further, the rate of inflation remained below the double-digit mark for the second successive month.
The latest inflation rate was the slowest since February 2021, when prices had risen by 4.83 percent.
The decline in inflation was contributed by a fall in the price of food articles, basic metals, textiles, chemicals and chemical products, and paper and paper products, the Ministry said.
The overall inflation was primarily driven by a 17.35 percent surge in fuel and power prices, though well below the 23.17 percent surge in October.
Prices for primary articles grew 5.52 percent and those for manufactured products gained 3.59 percent.
Inflation based on food prices softened notably to 2.17 percent in November from 6.48 percent in October, and costs for non-food articles logged an annual growth of 7.48 percent.
On a monthly basis, wholesale prices dropped 0.26 percent in November, reversing a 0.39 percent decline in the prior month.
Data released earlier this week showed that India's consumer price inflation eased to an 11-month low of 5.88 percent in November from 6.77 percent in October. The inflation rate came within the Reserve Bank's tolerance band of 2.0 to 6.0 percent for the first time this year.
