India’s wholesale inflation rises to 1.32 % in September

 India’s wholesale price index (WPI) rose to 1.32 per cent in September, data released by the federal commerce and industry ministry said on Wednesday.

“The annual rate of inflation, based on monthly WPI, stood at 1.32 per cent (provisional) for the month of September 2020 as compared to 0.33 per cent during the corresponding month of the previous year,’’ a statement issued by the ministry said.

The increase has been attributed to the rising food prices ahead of the festival season.

September’s increase has marked a second straight month in which wholesale prices moved higher, amid supply disruptions in spite of the strategic lifting of restrictions imposed in late-March to curb the spread of the ongoing COVID-19 pandemic.

In August the WPI stood at 0.16 per cent.

Wholesale inflation or the rate of increase in wholesale prices, is determined by the WPI.

Until August, wholesale inflation had remained in the negative territory (deflation) for four months in a row.

Wholesale deflation was estimated at 1.57 per cent in April, 3.37 per cent in May, 1.81 per cent in June and 0.58 per cent in July.

In September, wholesale inflation in food articles stood at 8.17 per cent, in contrast with 3.84 per cent in the previous month, the data showed.

While the rates of cereals declined 3.91 per cent last month, those of pulses climbed up 12.53 per cent.

Wholesale inflation in vegetables came in at 36.54 per cent in September thanks to a 107.63 per cent surge in potato rates, the data showed.

However, onion prices eased to 31.64 per cent, providing some respite to the overall WPI reading.

In the manufactured products category, wholesale inflation rose to 1.61 per cent in September from 1.27 per cent in the previous month.

Meanwhile, separate data released on Monday showed consumer (retail) inflation gauged by the Consumer Price Index (CPI) surged to 7.34 per cent in September, its highest level recorded since January.