WPI Inflation Jumps To 12.54% In October Due To High Fuel Prices, Manufactured Goods

The high rate of inflation in October is primarily due to rise in prices of mineral oils, basic metals, food products, crude petroleum & natural gas, chemicals and chemical products and other items

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New Delhi: India's inflation based on wholesale price index (WPI) stood at 12.54 per cent in October discontinuing with the five-month downward trend as prices of manufactured items and fuel group witnessed a rise.

 “WPI inflation spikes to 12.54 per cent in October, against 10.66 per cent in September,” according to news agency PTI. "The high rate of inflation in October 2021 is primarily due to rise in prices of mineral oils, basic metals, food products, crude petroleum & natural gas, chemicals and chemical products etc. as compared the corresponding month of the previous year," the Ministry of Commerce & Industry said in a statement.

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

As per the data released by the industry department, inflation accelerated to 37.2 per cent in October from 24.8 per cent in the preceding month while inflation for manufactured items rose to 12 per cent from 11.4 per cent during the same period. However, food inflation contracted 1.7 per cent during October as vegetable prices eased from their level a year ago.

Crude petroleum inflation was 80.57 per cent during the month under review, as against 71.86 per cent in September. Rise in petrol, diesel and cooking gas prices impacted fuel inflation while prices of basic metals, textiles, plastics and edible oils pushed inflation of manufactured items.

Retail inflation marginally picked up to 4.48 per cent in October due to higher-than-expected fuel and food inflation. WPI rose 10.66 per cent in September 2021 while the figure for August was 11.64 per cent.

In its report last week, Fitch Solutions cautioned that despite one of the strongest growth outlooks across the emerging markets, policymakers in India are facing rising inflationary pressures, which will start to pose policy challenges. The Centre had slashed excise duty on petrol and diesel by Rs5 per litre and Rs10 per litre respectively, offering some relief to consumers on the eve of Diwali.