WPI surges to four month high of 5.28% in October

WPI surge in October 2018 CREDIT: Deccan Chronicle

Fuel and Power along with Manufactured Products show steepest rise

RAJASHREE DAS K

Chennai: Higher inflation in manufactured products and fuel made India’s wholesale price inflation (WPI) surge to 5.28% this October showed data released by the Commerce and Industry Ministry of India.

The WPI rose from September’s 5.13% and is a sharp rise from 3.68% in October last year.
The ministry’s press release stated that the build up inflation rate in the financial year so far was 4.64% compared to a build up rate of 2.12% in
the corresponding period of the previous year.
The index for the major group Primary Articles rose by 0.7 percent to 136.3 (provisional) from 135.4 (provisional) for September while fuel and power rose 18.44% from 16.65%.

Another major increase was of Manufactured products which surged to 4.49% in October from 4.22% within a month due to higher price of other meats, preserved/processed (6%) and castor oil (4%).

The WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group decreased from 0.14% WPI Food Index (Weight 24.38%)

The current WPI Food Index, restructured and launched on May 2017, shows price changes in food items with price quotations from producers.
Unlike the CPI Food Price Index which uses price quotations from retailers.
Data released on Monday also showed a decline in India’s retail inflation to 3.31% in October from 3.7% in September

The pace of decline in inflation, in the wholesale basket, slowed for pulses but rose in onions and, eggs and meat.