WPI Inflation: Wholesale inflation data gave relief, came down to 10.7% for the fourth consecutive month in September
Wholesale inflation data has been released in the country, which is somewhat of a relief. Wholesale price-based inflation declined for the fourth straight month to 10.7 per cent in September, driven by moderation in prices of food articles, fuel and manufactured goods.
Earlier, WPI inflation was 12.41 per cent in August and 11.80 per cent in September last year. This year the Wholesale Price Index (WPI) had touched a record high of 15.88 per cent in May. Since then it has registered a decline in the last 4 months.
WPI in double digits since 18 months
September is the 18th consecutive month that WPI inflation has remained in double digits. Inflation in September, 2022 is mainly due to increase in the prices of mineral oils, food articles, crude petroleum and natural gas, chemical and chemical products, basic metals, electricity, textiles etc. over the corresponding month of the previous year.
Inflation of food items affected
| the product | inflation rate august | inflation rate september |
| food items | 12.37% | 11.03% |
| Vegetable | 22.29% | 39.66% |
| fuel and electricity | 33.67 | 32.61 percent |
| manufactured products | 6.34 | |
| oilseeds | (-) 16.55 |
What will the Reserve Bank do?
RBI primarily looks at retail inflation for monetary policy formulation. Therefore, the reduction in wholesale inflation will not have any effect on it. According to data released earlier this week, retail inflation remained above the Reserve Bank’s upper tolerable limit of 6 per cent for the ninth consecutive month and stood at a 5-month high of 7.41 per cent in September. To contain inflation, the RBI has increased the key interest rate four times this year to 5.90 per cent – the highest since April 2019.
Latest Business News
function loadFacebookScript(){
!function (f, b, e, v, n, t, s) {
if (f.fbq)
return;
n = f.fbq = function () {
n.callMethod ? n.callMethod.apply(n, arguments) : n.queue.push(arguments);
};
if (!f._fbq)
f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = [];
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t, s);
}(window, document, ‘script’, ‘//connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1684841475119151’);
fbq(‘track’, “PageView”);
}
window.addEventListener(‘load’, (event) => {
setTimeout(function(){
loadFacebookScript();
}, 7000);
});
,
