Vegetable prices shot up by 95.25 per cent in November as compared to 78.38 per cent in the previous month, said the Wholesale Price Index (WPI) inflation data released today.
The overall inflation in the food segment comprising wheat, pulses, vegetables, milk, among others, was at 19.93 per cent, up from 18.19 per cent in October.
The rise in WPI comes after the retail or consumer price inflation jumped to 11.24 per cent.
The inflation was at 7 per cent in October and 7.05 per cent in the earlier month (revised upwards from 6.46 per cent).
Potato prices shot up by 26.71 per cent in November as compared to a contraction in the previous month. The onions too were costly, but the price rise was low as compared to October. Onion inflation was at 190.34 per cent in November.
The data further revealed that protein rich items like egg, meat and fish were costlier by 15.19 per cent while milk was dearer by 6.25 per cent in November.
The inflation in fuel and power segment was at 11.08 per cent in the month under review, up from 10.33 per cent in October.
The price rise in the manufactured products rose to 2.64 per cent from 2.50 per cent.
The WPI inflation for November 2013 is the highest since September 2012 when it was 8.1 per cent.
Amid slowing industrial production, the RBI is scheduled to review the monetary policy on December 18. It had hiked the key lending rate by 0.25 per cent in each of its previous two policy reviews to contain inflation.
India's headline inflation surged past analysts' expectations to a 14-month high of 7.52 percent in November, government data showed on Monday, after food prices rose at the fastest clip since June 2010.
The wholesale price index's annual rise compared with a 7 per cent jump forecast by economists in a NU poll. In October, wholesale prices, India's main inflation measure, rose 7 per cent.
Food prices rose 19.93 per cent year-on-year in November, faster than an annual rise of 18.19 pe rcent in October.
Costlier fruits and vegetables such as onions and tomatoes had also pushed retail inflation to a nine-month high of 11.24 per cent in November, making it harder for the Reserve Bank to lower interest rates.
DARIUSZ KOWALCZYK, SENIOR ECONOMIST EX-JAPAN ASIA, CREDIT AGRICOLE CIB, HONG KONG
"The high print means RBI has to hike rates or lose credibility after it reacted negatively to the CPI data last week. However, the rise in inflation is purely food-price driven.
"Rate hikes will not correct food prices, the hawkish intention is a mistake, in our view, and will lead to slower growth, which will also pressure the INR. INR assets should fall across the board after the print. We remain highly negative on the INR and see 72 at the end of calendar '14."
A PRASANNA, ECONOMIST, ICICI SECURITIES PRIMARY DEALERSHIP LTD, MUMBAI
"The surprise in the headline number is largely due to food inflation though manufacturing inflation is well behaved. So I don't think RBI should overreact to this data. Our view is RBI will raise rate by 25 basis points to 8 percent at the policy review and pause. Now that the headline inflation has moved up they need to be seen doing something."