WPI inflation dips to 10.66 per cent in September on lower food prices
Wholesale price-based inflation eased to 10.66 per cent in September, helped by moderation in food prices, while crude petroleum saw a spike. WPI inflation remained in double digits for the sixth consecutive month. It was 11.39 per cent in August. Inflation was 1.32 per cent in September 2020.
“The higher rate of inflation in September 2021 is mainly due to increase in the prices of mineral oils, base metals, non-food items, food products, crude petroleum and natural gas, chemicals and chemical products etc. as compared to the same month. Last year,” the Ministry of Commerce and Industry said in a statement.
Inflation in food articles eased for the fifth consecutive month, registering (-) 4.69 per cent in September from (-) 1.29 per cent in August, mainly due to lower vegetable prices. Pulses prices continued to rise by 9.42 per cent.
Inflation in the fuel and power basket stood at 24.91 per cent in September, as against 26.09 per cent in the previous month.
Crude petroleum and natural gas prices rose 43.92 per cent in September from 40.03 per cent in the previous month. In manufactured products, inflation stood at 11.41 per cent during the month.
The RBI, which primarily takes into account retail inflation in its monetary policy, kept interest rates unchanged at a record low earlier this month.
Retail inflation in September also eased to a five-month low of 4.4 per cent on softening food prices.
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