Key highlights The Wholesale Price Index (WPI) based inflation surprised negatively during November 2013 by coming in at 7.52% higher than market expectations of 7.00%. The headline print edged higher as compared to inflation hovering at about 7.00% in three preceding months and 7.24% in November 2012. During the month, inflation across major components – primary articles, fuel and power and manufactured products has witnessed an uptick as compared to that in the previous month. Food inflation persisted at an uncomfortably high level of 19.93%, a 41-month high owing to elevated vegetable prices for the fifth straight month. Inflation for September 2013 has been revised higher to 7.05% from 6.46% reported earlier on upward revision across the major components. We expect the RBI to hike its policy rate by 25bp in the upcoming policy review on December 18 in light of its continued fo...