WPI Inflation Climbs To 4-Month High Of 2.36% In October Amid Soaring Food Prices

Wholesale food inflation saw a significant jump, rising to 13.54 per cent in October, compared to 11.53 per cent in September, according to the Ministry of Commerce and Industry data

India’s wholesale price index (WPI)-based inflation rose to a four-month high of 2.36 per cent in October, up from 1.84 per cent in September. The increase was primarily driven by a sharp rise in food prices, particularly vegetables.

This latest WPI data follows closely on the heels of the Consumer Price Index (CPI) report, which showed retail inflation had surged to a 14-month high of 6.2 per cent, also largely fueled by higher food prices.

Wholesale food inflation saw a significant jump, rising to 13.54 per cent in October, compared to 11.53 per cent in September, according to the Ministry of Commerce and Industry data on Thursday. In addition to food, other major sub-indices, such as manufactured products, also experienced a slight acceleration in prices, while fuel and power prices continued to decline during the month.

The rise in food prices was largely driven by significant increases in the cost of key items such as potatoes (up 78.73 per cent), vegetables (up 63.04 per cent), wheat (up 8.04 per cent), and fruits (up 13.55 per cent). While onion prices moderated during the month, they remained elevated by 39.25 per cent.

On the other hand, the prices of other food staples showed some signs of easing, with cereals increasing by 7.91 per cent, paddy by 7.47 per cent, pulses by 9.74 per cent, and milk by 3 per cent, all experiencing slight deceleration compared to the previous month.

Manufactured products, which carry a weight of 64.2 per cent in the WPI index, also saw an uptick in inflation, rising to 1.5 per cent in October from 1 per cent in September. This was primarily driven by higher prices for manufactured food products (up 7.77 per cent), vegetable oils (up 20.16 per cent), and beverages (up 2.13 per cent).

Prices of other manufactured goods, including tobacco (up 1.15 per cent), textiles (up 0.89 per cent), apparel (up 1.25 per cent), and pharmaceuticals (up 0.42 per cent), showed signs of deceleration during the month. Meanwhile, factory gate prices for fuel and power contracted further in October, with a decline of 5.79 per cent. Prices for high-speed diesel (-6.23 per cent) and petrol (-7.35 per cent) remained in contraction, while the price of cooking gas saw a sharp deceleration, rising by just 2.57 per cent.