The government is not worried about a slowdown in the November industrial output, which reflects month-to-month volatility, the deputy chairman of India's Planning Commission Montek Singh Ahluwalia said.

Ahluwalia also said on Wednesday monetary tools may not be effective in dealing with sudden spike in vegetable prices.

India's industrial output in November rose a slower-than-expected 2.7 percent from a year earlier, sharply lower than the previous month's revised annual growth of 11.3 percent, government data showed on Wednesday.

India's food inflation rose for the fifth straight week to 18.3 percent in late December, the highest in more than a year, reinforcing fears it has spilt over to broader prices and cementing expectations of a January interest rate hike.