India’s wholesale inflation hits six-month high in Oct at 3.59%

wholesale inflation

New Delhi, Nov 14: India’s annual rate of inflation based on wholesale prices scaled up in October to 3.59 per cent a six-month high, because of higher food prices, official data showed here on Tuesday.

As per the Ministry of Commerce and Industry data, the wholesale price index (WPI), with the revised base year of 2011-12, increased in October to 3.59 per cent from 2.60 per cent in September.

“The annual rate of inflation, based on monthly WPI, stood at 3.59 per cent (provisional) for October 2017 (over October 2016) as compared to 2.60 per cent (provisional) for the previous month and 1.27 per cent during the corresponding month the previous year,” the ministry asserted in its review of October WPI.

“Build up inflation rate in the financial year so far was 2.03 per cent compared to a build up rate of 3.53 per cent in the corresponding period of the previous year”. it added.

On a segment-wise basis, the expenses on primary articles, which constitute 22.62 per cent of the WPI’s total weightage, edged higher by 3.33 per cent from an increase of 0.15 per cent in September 2017.

The prices of food items  hiked by 4.30 per cent from an acceleration of 2.04 per cent during September 2017 and a rise of 2.98 per cent in October 2016.

While in terms of food prices, the YoY (Year-over-year) wholesale inflation rate for onion was higher by 127.04 per cent, whereas for potatoes it tumbled  by (-)44.29 per cent.

On other hand, the overall vegetable prices in October increased by 36.61 per cent, against a fall of (-)11.84 per cent in the same month a year ago.

According to the data, wheat became cheaper by (-)1.99 per cent on YoY basis and the prices of pulses fallen by (-)31.05 per cent, but that of paddy became dearer by 3.10 per cent.

Protein-based food articles like eggs, meat and fish became expensive by 5.76 per cent during the month under review.

Prices of other major group under the WPI, manufactured products, which comprise nearly 64.23 per cent of the index, recorded a 2.62 per cent rise.

Whereas, Fuel and power prices’ inflation hiked by 10.52 per cent.

Product-wise, the price of high-speed diesel rose by 15.43 per cent during October while that for petrol climbed by 12.87 per cent and for LPG by 26.53 per cent.

Wholesale prices had went up in August to 3.24 per cent from July’s rise of 1.88 per cent.

Wefornews Bureau 

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