India’s wholesale price inflation quickens over 12% in October
India’s wholesale inflation for October 2021 on a sequential and YoY basis has seen a surge due to the higher prices of primary goods, food articles, and fuel.
Hence, the annual rate of inflation, based on wholesale prices, rose to 12.54 percent last month from 10.66 percent in September.
Similarly, on a YoY basis, the Wholesale Price Index (WPI) data furnished by the Ministry of Commerce and Industry has risen exponentially over October 2021, when it stood at 1.31 percent.
“The high rate of inflation in October 2021 is primarily due to rise in prices of mineral oils, basic metals, food products, crude petroleum and natural gas, chemicals and chemical products, etc., as compared to the corresponding month of the previous year,” the ministry said in its review of ‘Index Numbers of Wholesale Price in India‘ for October.
“The month over month change in WPI index for the month of October 2021 (as compared to September 2021) was 2.28 percent.”
ICRA Chief Economist Aditi Nayar said the core index recorded a month-on-month jump of 1 percent with a widespread uptick across the sub-groups reflecting the pervasive commodity price pressures.
D R E Reddy, CEO & Managing Partner, CRCL LLP, “After a rise in CPI inflation, we are witnessing a rise in wholesale price index (WPI) inflation. The WPI data has risen to a 5-month high which is higher than expected. The higher manufactured products and fuel inflation have led to a rise in WPI.”
He added, “The month-on-month rise may hasten RBI’s decision to unwind the excess liquidity, tighten the policy rates earlier than expected.”
[With Inputs from IANS]
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