Inflation soars to 14-month high of 7.52 pc in November

Inflation rose to a 14-month high of 7.52 per cent in November as food items, especially potato and onion, became costlier, strengthening the case for the RBI to hike the key interest rate by another 0.25 per cent for the third time in a row at its policy review later this week.
Inflation as measured by the wholesale price index (WPI) is at the highest level since 8.1 per cent in September 2012 and compared with 7 per cent in October.
Vegetable prices shot up 95.25 per cent in November compared with a 78.38 per cent increase in the previous month, government data showed.

Inflation in the food segment comprising wheat, pulses, vegetables and milk, among others, was at an almost four-year high of 19.93 per cent. It was at 18.19 per cent in October.
WPI inflation for September was revised upwards to 7.05 per cent from the earlier estimate of 6.46 per cent.
Last week, the government said retail inflation, measured by the consumer price index, jumped to 11.24 per cent.

The Reserve Bank is expected to take into account rising inflation and declining industrial output data in its mid- quarterly monetary policy review on Wednesday.
"We expect the RBI to raise the repo rate by 0.25 per cent to guard against a further hardening of inflationary expectations and generalisation of food inflation," ICRA Senior Economist Aditi Nayar said.

Factory output contracted 1.8 per cent in October, as against growth of 8.4 per cent in the same month last year.
"We hope RBI will take due cognisance of the fact that growth is still feeble and needs support," industry chamber Ficci said.
As per the data, potato prices shot up by 26.71 per cent in November compared with a contraction in the previous month.