WPI inflation at four-month high, rises to 5.28% in October
Inflation based on wholesale prices rose to a four-month high of 5.28% in October, mainly due to spike in petrol and diesel prices. The Wholesale Price Index (WPI)-based inflation stood at 5.13% in September and 3.68% in October last year. Food articles witnessed deflation at 1.49% in October, against 0.21% September. Vegetables became cheaper with deflation at 18.65% in October, against 3.83% in September.
Inflation in October: Fuel prices at 18.44%, potato at 93.65%
According to the government data released today, inflation in "fuel and power" basket in October spiked to 18.44%, from 16.65% in September. Individually, in petrol and diesel, it was 19.85% and 23.91%, respectively, and for Liquefied Petroleum Gas, it was 31.39% during October. Among food-articles, potato prices saw 93.65% inflation in October while onion witnessed deflation of 31.69%. Similarly, pulses saw deflation at 13.92%.
Last higher WPI inflation was seen in June at 5.68%
A higher WPI inflation than 5.28% was last seen in June at 5.68%. WPI inflation is in contrast to the retail or consumer price index-based inflation data released earlier this week. The October Consumer Price Index (CPI) inflation had cooled to a year-low of 3.31%.
RBI warned rising oil prices will pose risks to inflation
The Reserve Bank of India (RBI) mainly takes into account retail inflation data while formulating monetary policy. In its fourth monetary policy review, released last month, RBI maintained status quo on the benchmark interest rate but warned that rising oil prices and tightening of global financial conditions pose substantial risks to the inflation. For October-March, it pegged CPI-based retail inflation to be between 3.9-4.5%.
