New Delhi
India’s wholesale price inflation rose to 2.36% in October, marking a four-month high, driven by a sharp increase in food prices, especially vegetables, and manufactured goods, according to government data released on Thursday.
The wholesale price index (WPI) inflation was 1.84% in September, and negative (-0.26%) in October of the previous year. Inflation in food items surged to 13.54% in October, up from 11.53% in September, with vegetables seeing the most significant price rise of 63.04%, compared to 48.73% in the previous month. Potato and onion prices also remained high, with inflation rates of 78.73% and 39.25%, respectively.
In contrast, the fuel and power category saw a deflation of 5.79% in October, improving from a 4.05% deflation in September. Manufactured goods inflation increased slightly to 1.50% in October from 1% in the previous month.
This marks the second consecutive month of rising WPI inflation, following a higher inflation rate of 3.43% in June 2024. According to the Ministry of Commerce & Industry, the rise in inflation was mainly due to increased prices in food articles, food product manufacturing, machinery, motor vehicles, and trailers.
Earlier this week, the consumer price index (CPI) data showed retail inflation rising to 6.21%, a 14-month high, driven by food price hikes. This is above the Reserve Bank of India’s (RBI) upper tolerance limit, potentially affecting future interest rate decisions.
