The inflation, based on monthly WPI (Wholesale Price Index), rose to eight-month high of 3.93 per cent for the month of November on the back of rise in food and fuel prices.
WPI inflation of food articles increased to 6.06 per cent last month, as against 4.30 per cent in October, as per the data released by the Commerce Ministry.
Consumer inflation rose to a 15-month high of 4.88 per cent last month, up from 3.58 per cent in October.
The MPC also said that that inflation expectations, i.e., food and fuel inflation, edged up in November.
"While vegetable prices may ease on a month-on-month basis going forward, primary food inflation on a year-on-year basis is nevertheless expected to rise further in the next two months, on account of the base effect related to the drop in vegetable prices from December 2016-February 2017", Nayar said.
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Product-wise, the price of high-speed diesel rose by 11.63 per cent during November while that of petrol climbed by 10.57 per cent and for LPG by 31.30 per cent.
The index for "Manufacture of Wearing Apparel" group rose by 0.3 per cent to 137.5 (provisional) from 137.1 (provisional) for the previous month due to higher price of manufacture of knitted and crocheted apparel (one per cent).
However, the price of cotton yarn and manufacture of cordage, rope, twine and netting (2 per cent each), and manufacture of knitted and crocheted fabrics (1 per cent) declined. However, price of onion-a key ingredient used in Indian kitchen-more than doubled in November as compared with a contraction (-) 55.32 percent during the same period a year ago. However, the price of body (for commercial motor vehicles) (five per cent) and chain, crankshaft, engine and shafts of all kinds (one per cent each) moved up.
Meanwhile, the rate of inflation based on the WPI Food Index rose to 4.1 per cent in November from 3.23 per cent in October.