Wholesale price based inflation declined to a 3-month low of 1.89 per cent in November on cheaper food items, and experts predicted a 0.25 per cent interest rate cut by the RBI in the policy review in February.  The Wholesale Price Index (WPI) based inflation was 2.36 per cent in October 2024. It was 0.39 per cent in November, last year. In August, 2024, it was 1.25 per cent.

 As per the data, inflation in food items eased to 8.63 per cent in November, as against 13.54 per cent in October. The decline was led by a dip in vegetable inflation which stood at 28.57 per cent, as against 63.04 per cent in October.

 Inflation in potato, however, continued to be high at 82.79 per cent, while in onion it fell sharply to 2.85 per cent in November.

 The fuel and power category witnessed a deflation of 5.83 per cent in November, against a deflation of 5.79 per cent in October. In manufactured items, inflation was 2 per cent in November, against 1.50 per cent in October.

 In a research note, Barclays said wholesale price inflation softened in November, on lower primary food inflation, which more than offset higher inflation seen in manufactured products.

 "December to date, global prices are up 0.7 per cent and are likely to push December WPI inflation higher," Barclays said.

 As per the consumer price index data released last week, retail inflation moderated to 5.5 per cent in November, compared with 6.2 per cent in October.

 Barclays said this is within the monetary policy committee's (MPC) tolerance band of 2-6 per cent indicating that CPI inflation will be drifting closer to the 4 per cent target by March 2025.

 "We expect the MPC to cut the policy repo rate by 25bps in its February meeting. We are mindful of the almost new-looking MPC that will be in charge of this decision," Barclays said.