Wholesale Price Index inflation at 7-month high in September, up 1.3% as food prices rise

Source: Timesnownews.com, Oct 14, 2020

New Delhi: Wholesale Inflation as gauged by the Wholesale Price Index (WPI) index rose to its highest levels in seven months on the back of an increase in prices of food articles. In September 2020, WPI or wholesale inflation stood at 1.32% as compared to 0.33% during the corresponding period last year.

“The annual rate of inflation, based on monthly WPI, stood at 1.32% (provisional) for the month of September 2020 (over September 2019) as compared to 0.33% during the corresponding month of the previous year,” said a statement from Ministry of Commerce & Industry.

WPI inflation was in the negative territory for four straight months — April -1.57%, May -3.37%, June -1.81% and July -0.58%. It turned positive in August, increasing 0.33% in the previous month. 

Wholesale food prices were reported at eight-month high indicating supply-side disruptions in the lockdown months. Experts anticipate food inflation figures to cool-off in months ahead.

According to provisional data released by the Department for Promotion of Industry and Internal Trade (DPITT) on Wednesday, Inflation in food articles during the month was at 8.17% as compared to 3.84% in August.

According to data released earlier this week by MoSPI, retail inflation based on consumer price index (CPI) spiked to 7.33% in the month of September as against 6.69% in the month of August. Rural inflation has also risen to 7.43% and urban inflation has risen to 7.26%. India’s industrial production has declined by 8% due to lower output of mining, manufacturing and power generation sectors. India’s inflation rates have gone up as compared to August 2020. A rise in the urban and rural inflation rates has also been seen when compared to August data. The figures suggest how the overall inflation in India has gone up with the core focus being on retail.

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