New Delhi, Dec 14 (IANS) India's inflation fell to a 10-month low of 7.24 percent in November, as compared to 7.45 percent in the previous month, owing to softening in power and fuel prices, government data showed Friday.
This is the lowest level of the wholesale price index (WPI)-based inflation since February. Inflation was recorded at 9.46 percent in the corresponding month of previous year.
However, wholesale price-based food inflation increased to 8.50 percent in November this year from 8.32 percent recorded in the corresponding month of previous year.
This was largely due to an exponential rise in the prices of cereals, rice, wheat and pulses, according to data released by the ministry of commerce and industry.
Cereals became costlier by 15.85 percent while rice became expensive by 11.80 percent and the price of wheat jumped by 23.19 percent and pulses surged by 19.10 percent year-on-year.
However, vegetables have become cheaper by 1.19 percent in wholesale market.
Fuel and power inflation moderated to 10.02 percent in November as compared to 15.48 percent in the corresponding month of last year.
Inflation of manufactured products declined to 5.41 percent in the period under review as compared to 8.17 percent in the corresponding month of previous year.
Moderation in inflation would give some relief to the policymakers who have been struggling to balance the need for controlling inflationary pressure and stimulate economic growth.
Inflation has remained at an elevated level despite a tight monetary policy adopted by the Reserve Bank of India.
There will be pressure on RBI for rate cuts in its mid-quarterly review of monetary policy for 2012-13 on Dec 18, 2012.
The RBI has kept key lending and borrowing rates unchanged, saying inflation remained sticky and might rise further.