WPI inflation eases to 10.66% in September due to lower food prices
For the sixth month in a row, WPI inflation stayed in double digits. It was 11.39% in August.
The wholesale price-based inflation dropped to 10.66 % in September, aided by lower food prices, despite a rise in crude oil prices. For the sixth month in a row, WPI inflation stayed in double digits. It was 11.39% in August. Inflation was 1.32% in September 2020. The Commerce and Industry Ministry said in a statement, “In September 2021, there was a high rate of inflation mainly because of increase in the prices of mineral oils, basic metals, non-food articles, food products, crude petroleum & natural gas, chemicals and chemical products, and other items as compared to the same month last year.”
The food inflation declined for the sixth month in a row in September, to (-) 4.69% from (-) 1.29% in August, owing to lower vegetable costs. Pulses prices continued to rise at a rate of 9.42%.
In September, inflation in fuel and power was 24.91%, down from 26.09% the previous month.
In September, crude petroleum and natural gas prices increased by 43.92%, compared to 40.03% the last month.
During the month, inflation in manufactured goods was 11.41%.
The RBI, which bases its monetary policy primarily on retail inflation, kept interest rates at record lows earlier this month.
Retail inflation decreased to a five-month low of 4.4% in September, owing to lower food prices.
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