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Wholesale Inflation Surges To 12.54% In October, Remains In Double-Digits For 7th Straight Month

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Wholesale Inflation Surges To 12.54% In October, Remains In Double-Digits For 7th Straight Month

Food index jumped to 3.06 per cent from 1.14 per cent in September.

New Delhi: India’s annual wholesale price-based inflation in October accelerated to a five-month high of 12.54 per cent from September’s 10.66 per cent, pushed up by higher increases in fuel and manufacturing prices, government data showed on Monday.

The figure remained at double-digit levels for the seventh straight month, according to the monthly data released by the Commerce Ministry.

“The high rate of inflation in October is primarily due to rise in prices of mineral oils, basic metals, food products, crude petroleum and natural gas, chemicals and chemical products as compared the corresponding month of the previous year,” the Ministry said.

Fuel and power prices rose 37.18 per cent in October year-on-year compared with 24.81 per cent in September, while manufactured product prices rose 12.04 per cent compared with 11.41 per cent in the previous month.

“The increase was led by a surge in vegetable prices, which offset a moderation in non-food articles and minerals. Prices of fuels also continued to rise, adding to inflationary pressures, but will likely reverse dramatically in November. Core WPI inflation remained elevated at 11.9 per cent in October, up from 11.2 per cent in September,” Rahul Bajoria, Chief India Economist, Barclays.

Food index jumped to 3.06 per cent from 1.14 per cent in September.

The manufactured products’ index increased by 0.82 per cent in October. “The increase in prices is mainly contributed by manufacturer of basic metals; chemicals and chemical products; electrical equipment; rubber and plastics products and textiles,” the Ministry stated.

Another set of data released on Friday had cited that retail inflation inched up to 4.48 per cent in October due to an uptick in food prices.

The Reserve Bank of India (RBI), which mainly factors in consumer price-based or retail inflation while arriving at its bi-monthly monetary policy, has been tasked by the government to keep it at 4 per cent, with a tolerance band of 2 per cent on either side.

The RBI has projected the CPI inflation at 5.3 per cent for 2021-22: 5.1 per cent in second quarter (Q2), 4.5 per cent in third (Q3); 5.8 per cent in last quarter (Q4) of the fiscal, with risks broadly balanced.

The retail inflation during April-June period of 2022-23 is projected at 5.2 per cent.

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