Business

Now wholesale prices jump in Sept; WPI rises to 1.32%

New Delhi, Oct 14 (IANS) | Publish Date: 10/14/2020 1:45:44 PM IST

High prices of food products, primary articles and manufactured goods accelerated India’s September wholesale inflation.

Consequently, the annual rate of inflation based on wholesale prices rose to 1.32 per cent in September from 0.16 per cent in August, and from (-)0.25 per cent in July.

On a year-on-year (YoY) basis, the Wholesale Price Index (WPI) data furnished by the Ministry of Commerce and Industry has risen by only 0.33 per cent as against the corresponding period of the previous year.

“The annual rate of inflation, based on monthly WPI, stood at 1.32 per cent (provisional) for the month of September 2020 (over September, 2019) as compared to 0.33 per cent during the corresponding month of the previous year,” the ministry said in its review of ‘Index Numbers of Wholesale Price in India’ for September. 

On a sequential basis, the expenses on primary articles, which constitute 22.62 per cent of the WPI’s total weightage, increased 5.10 per cent from 1.60 per cent in August 2020. The prices of food items remained at elevated levels with a rise of 6.92 per cent from 4.07 per cent reported for August.

On commodity and sub-segment basis, potato price increased by 107.63 per cent in September while it was at 82.93 per cent during August 2020. Overall, vegetable prices in September rose 36.54 per cent against a rise of 7.03 per cent in August.

Similarly, pulses became dearer by 12.53 per cent last month from 9.86 per cent in August.

On a YoY basis, expenses on food items increased at a faster rate of 8.17 per cent from 7.54 per cent in the corresponding period of last year. Sub-segment of vegetable prices in September rose 36.54 per cent against the decline of 19.3 per cent in the same month a year ago.

The cost of the fuel and power category declined (-)9.54 per cent against a rise of (-)6.68 per cent YoY.

Furthermore, the cost of the manufactured products category rose 1.61 per cent against a fall of (-)0.42 per cent YoY.

The data trajectory assumes significance as it fans further concerns over stagflation, an economic trend which marks rising inflation and falling gross domestic product (GDP).

On Monday, another key inflation data point -- Consumer Price Index -- showed that a massive rise in food prices spiked India’s September retail inflation to 7.34 per cent from 6.69 per cent in August.

Though non-comparable, India had recorded a retail price inflation of over 3 per cent in the corresponding period of previous year.

Notably, the Reserve Bank of India in its latest monetary policy review had maintained the key lending rates on account of rising retail inflation.

 

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