14 Oct , 2022 By : Monika Singh
India’s WPI inflation came down to 10.7 per cent per cent in September, from 12.41 per cent in August, aligned with the analysts’ sentiment. The ease off in the wholesale price index-based inflation was primarily aided by fall in the global commodity prices, the data released by the Ministry of Commerce & Industry showed. However, despite the cool off, the WPI has remained in double digits for the 18th month in a row, starting from April 2021. The WPI inflation levels have been on a downward trend since the spike witnessed in July when it spiked to 13.93 per cent. On the contrary, earlier this week, the retail inflation saw an upsurge and came in at a 5-month high of 7.41 per cent.
The food inflation based on the WPI food index was reported at 8.08 per cent in September, down from 9.93 per cent in August 2022. Various other segments also saw moderations in the inflation rate last month. The inflation rate for the primary articles segment eased to 11.73 per cent, as compared to 14.93 per cent in August. Fuel and power segment’s on-year inflation rate came in at 32.61 per cent, down from 33.67 per cent in August. The inflation rate of manufactured products in September dipped to 6.34 per cent from 7.51 per cent in August. The decline in manufacturing products inflation rate is significant as it contributes more than 64 per cent to the wholesale basket.
“Inflation in September, 2022 is primarily contributed by rise in prices of mineral oils, food articles, crude petroleum & natural gas, chemicals & chemical products, basic metals, electricity, textiles etc. as compared to the corresponding month of the previous year,” the commerce ministry said in the report. While the WPI inflation has been declining for the fourth month in a row now, the retail inflation spiked to a five-month high. The monetary policy committee decided to hike the interest rate by 50 basis points. Another rate hike is likely to be announced when the committee meets again in December.
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