Wholesale Inflation Worsens To 1.48% In October

Wholesale prices rose during the unlock phase, triggering rise in prices of commodities

Wholesale inflation in the country worsened to 1.48 per cent in October, from 1.32 per cent in the previous month, official data showed on Monday. That marked the highest level of wholesale inflation – or the rate of increase in wholesale prices – in eight months. The latest data comes at a time when the country is undergoing the unlock phase in order to revive economy, which shrank a record 23.9 per cent in the April-June period due to the coronavirus (COVID-19) pandemic.

A rise in commodities such as food, fuel, power and manufactured products has fueled inflation.

The rate of inflation based on Wholesale Price Inflation food index decelerated to 5.78 per cent in October from 6.92 per cent in the previous month.

In vegetables, it eased to 25.2 per cent in October, from 36.5 per cent in the previous month. Wholesale inflation in pulses worsened to 15.9 per cent, from 12.5 per cent.

Both primary articles and food inflation came in at 4.7 per cent and 6.4 per cent respectively in October.


‘Increase in core inflation suggests improvement in demand conditions, which have improved after COVID related lockdown was lifted. However, it will be too early to term this as a general recovery, a large part of this is due to festival related demand, ” said Devendra Kumar Pant, chief economist at credit ratings agency India Ratings.

“Rising retail food inflation and declined wholesale food inflation is a nightmare for policy makers. India Ratings expects demand to improve conditions further, however, bigger question is whether increased demand will be sustained after festive season,” he added.

Prices of fuel and power, however, continued to ease. with deflation – or negative inflation – quickening to 10.9 per cent in October, from 9.5 per cent in the previous month.

Wholesale inflation in manufacturing stood at 2.12 per cent last month, compared to 1.61 per cent in September. Inflation in a basket of manufactured items rose to a 19-month high of 2.1 per cent.


Disclaimer: This post has not been edited by our staff and is published from a syndicated feed. The Original Source of this post can be found at Source link


Please enter your comment!
Please enter your name here


Shobha Ranjolkar dies of cardiac arrest

Senior theatre artiste and theatre director Shobha Ranjolkar died of a cardiac arrest at a private hospital in Kalaburagi...

Israel bombs Hamas Gaza chief’s home as fighting enters seventh day

At least 153 people have been killed in Gaza since Monday, including 42 children, health officials said Israel bombed the home of Hamas’s chief...

Fire destroys chilli in cold storage in Ballari

A fire broke out in a cold storage in the Ballari Industrial Area on the outskirts of Ballari city at around 8 p.m. on...

Trains cancelled

South Western Railway has cancelled some trains to avoid accidents in the wake of Cyclone Tauktae.The cancelled services are train no 07342 Vasco da...

More Articles