WPI inflation increased to 12.54% in October
During the month under review, the crude petroleum inflation was 80.57% as against 71.86% in September
Due to the rise in prices of manufactured products and crude petroleum, the Wholesale Price Index (WPI) inflation increased to 12.54% in October. In September this year, inflation was at 10.66%. Back in October 2020 inflation was at 1.31%. For the seventh consecutive month, the WPI inflation has remained in double digit.
The Commerce and Industry ministry in a statement said that the high rates of inflations was due to an increase in rates of mineral oils, basic metals, food products, crude petroleum & natural gas, chemicals and chemical products as against the corresponding month of the previous year.
In manufactured items, inflation was higher at 12.4% in October, as compared to 11.41% in the previous month.
The level of price rise in the fuel and power segment was at 24.81% in September. This was at 37.18% in October.
Onion prices declined
During the month under review, the crude petroleum inflation was 80.57% as against 71.86% in September.
On a MoM basis, inflation in food articles too saw a slight uptick at (-)1.69% in October as against (-) 4.69% in September. Onion prices were lower at (-) 25.01%, while vegetable prices were lower at (-) 18.49%.
According to the data released last week, retail inflation based on the combined Consumer Price Index added 4.48% in October from 4.35% in September. Along with the high input costs, fuel and commodity prices, fuel prices also started going up.
The core index recorded MoM increase of 1% with a widespread increase across the sub-groups highlighting the pervasive commodity price pressures, said ICRA Chief Economist Aditi Nayar. She also added that, WPI inflation is projected to moderate in the coming months, owing to the base effect.