WPI Inflation Eases To Six-Month Low In September

India’s wholesale inflation fell to the lowest in the current financial year, led by a decline in prices of vegetables. Manufactured products inflation remained high.

Inflation as measured by the Wholesale Price Index stood at 10.66% in September on an annual basis, compared with 11.4% in August 2021, according to data released by the Ministry of Commerce and Industry on Thursday.

The gauge rose 0.07% month-on-month in September, compared to a rise of 0.67% in August.

Retail inflation fell to a five-month low of 4.35% in September, led by lower food prices.

WPI Inflation Internals

The downtick was led by primary food articles.

• Inflation in manufactured products—the largest component of the index—rose 11.41% in September compared with a rise of 11.39% in August.

• Year-on-year, primary articles inflation stood at 4.1% compared with 6.2% in August.

• Inflation in prices of food articles declined by 4.7% after falling by 1.3% in the previous month.

• Vegetables inflation declined by 32.5% after falling by 13.3% in the previous month. Onions saw a reversal in trend, declining by 1.9% in September, after a rise of 62.8% in August annually.

• The index of non-food articles rose 29.4% compared to a rise of 28.8% in the preceding month.

• Fuel and power index rose 26.1% in August compared with an annual rise of 26% in July.