WPI inflation increases to six-month high of 3.6% in October 2017

Wholesale Price Index Inflation rises

The government data released on Tuesday showed that inflation in food articles more than doubled to 4.30 per cent in October

According to data from the Ministry of Commerce and Industry, the wholesale price index (WPI), with the revised base year of 2011-12, went up in October to 3.59 percent from 2.60 percent in September.

Inflation, based on the wholesale price index (WPI) rose sharply to a 6-month high of 3.59 per cent in October as prices of food items and fuel jumped steeply.

"The annual rate of inflation, based on monthly WPI, stood at 3.59 per cent (provisional) for October 2017 (over October 2016) as compared to 2.60 per cent (provisional) for the previous month and 1.27 per cent during the corresponding month the previous year", the ministry said in its review of October WPI.

Reacting to the data, India Inc. said the rise in inflation was in line with the industry's expectations owing to factors like marginal rise in demand together with increase in prices of crude oil and other commodities globally.

In contrast, the overall vegetable prices in October rose by 36.61 per cent, against a fall of (-) 11.84 per cent in the same month a year ago.

Besides, industrial production for September expanded at 3.8 per cent, on poor showing by the manufacturing sector coupled with decline in consumer durables output. Last month's inflation was the highest since April, when it was 3.85 per cent.

"The increase was led by firming up of food prices with the vegetables segment remaining a key stress point at this juncture".

Among primary articles, inflation rate for the "food articles" group rose 2.2 per cent due to higher prices of fruits and vegetables, poultry chicken, egg, condiments and spices, barley and paddy. Fuel and power inflation hit 10.5% compared to previous month's 9% rise.

For the "manufactured tobacco products" group WPI rate declined by 1.3 per cent due to lower prices of cigarette and other tobacco products. However, the price of beedi was up by 4 per cent.

For the "manufactured apparel" group, it rose 0.4 per cent due to higher prices of knitted and crocheted apparel.

Inflation rate for the "manufacture of pharmaceuticals, medicinal chemical and botanical products" group rose 0.5 per cent due to higher prices of anti cancer drugs, ayurvedic medicaments, antibiotics and preparations thereof, antipyretic, analgesic, anti-inflammatory formulations and medical accessories and API and formulations of vitamins.

Altre Notizie