India’s Wholesale Inflation Rises In September On Fuel Prices
India’s wholesale price-based inflation rose in September after two months of easing, driven by an increase in cost of fuel.
Wholesale inflation in September, measured by the Wholesale Price Index, rose 5.13 percent compared with the same month last year, according to data from the Ministry of Commerce. WPI, that tracks changes in the price of goods in stages before the retail level, was pegged at 5 percent in September by a Bloomberg poll of economists.
Crude and petroleum prices rose 47.83 percent, while that of LPG rose 33.5 percent year-on-year. Food prices remained stable during the month.
Consumer price inflation rose marginally in September, but remained below the 4-percent mark.
At its meeting earlier this month, the Monetary Policy Committee projected inflation at 3.9-4.2 percent in the second half of the ongoing financial year but warned of upside risks that could emerge from higher fuel prices, a weaker rupee and increased support prices for farm crops. In response to these risks, the MPC changed it’s monetary policy stance to calibrated tightening, even though it did not hike rates. This was done with an intention to anchor inflation to near the 4-percent mid-point of the MPC’s inflation target of 4 (+/-2) percent.
Here are the key highlights (Year-On-Year)
- Price of primary articles fell 2.97 percent.
- Price of food articles fell 0.02 percent.
- Fuel and power price rose 16.65 percent.
- Price of manufactured products rose 4.22 percent.
- Crude petroleum price rose 47.83 percent.
- Potato price rose 80 percent.