Wholesale Price Inflation Eases To 8.39% In October, Lowest Since March 2021
Wholesale price-based inflation eased in October to 8.39 per cent year-on-year, compared to 10.70 per cent in September, helped by a fall in commodity prices, government data showed on Monday.
Declining for the fifth consecutive month, that Wholesale Price Index (WPI) reading is the lowest since March 2021 and below a double-digit rise for the first time in 18 months.
WPI inflation has been in double digits since April 2021, with the September reading coming in at 10.70 per cent and 13.83 per cent in October 2021.
This year the WPI touched a record high of 15.88 per cent in May.
"Decline in inflation rate in October 2022 is primarily contributed by fall in the price of mineral oils, basic metals, fabricated metal products, except machinery and equipment; textiles; other non-metallic mineral products; minerals etc.," the commerce and industry ministry said on Monday.
Compared to September, when food inflation rose by 11.03 per cent, it was 8.33 per cent in October.
Similarly, vegetable inflation last month was 17.61 per cent, less than half of the 39.66 per cent rise in September.
Wholesale inflation in October was 4.42 per cent for manufactured goods and 23.17 per cent for the "Fuel and Power" basket.
The latest easing in the headline WPI points to a lower reading of retail inflation to be released later in the day.
The Reserve Bank of India looks at retail inflation mainly to frame monetary policy, and any cooling in price pressures is a positive sign for India's central bank fighting elevated inflation and trying to stimulate the economy simultaneously.
Retail inflation has held above the RBI's upper tolerance threshold of 6 per cent for the ninth month in a row and was at a 5-month high of 7.41 per cent in September.
Investors will keep an eye on the October consumer price-based inflation, or retail inflation, to be released at 5.30 pm for clues on the RBI's policy path after it hiked its key interest rate four times this year to 5.90 per cent -- the highest since April 2019.
