Inflation based on the Wholesale Price Index (WPI) fell to 10.66% in September from the same month a year earlier. Inflation is lower than the 11.16% recorded in August 2021. The CNBC-TV18 survey of economists set WPI inflation at 11.4%.
Food prices helped moderate inflation even as crude oil spiked. However, it was in double digits for the sixth consecutive month. In September 2020, inflation was 1.32%.
In India, the WPI is the primary measure of inflation. It measures the price of a basket of wholesale products which fall broadly into three groups: fuel and electricity; primary items (such as food products) and manufactured products (base metals, food products, chemicals and textiles).
The high inflation rate in September 2021 is mainly due to higher prices for mineral oils, base metals, non-food items, food products, crude oil and natural gas, chemicals and chemicals , etc. compared to the corresponding month of the previous year, the Ministry of Commerce and Industry said in a statement.
Inflation for food items slowed for the fifth consecutive month, registering (-) 4.69% in September compared to (-) 1.29% in August, mainly due to lower prices for vegetables.
Pulse prices continued to climb 9.42%. Inflation of the fuel and electricity basket was 24.91% in September, against 26.09% the previous month.
The increase in crude oil and natural gas prices was 43.92 percent in September from 40.03 percent in the previous month.
In manufactures, inflation stood at 11.41% during the month. The RBI, which primarily takes retail price inflation into account in its monetary policy, earlier this month kept interest rates unchanged at record highs. Retail price inflation in September also slowed to a five-month low of 4.4 percent on moderating food prices.
(Edited by : Yashi Gupta)
First publication: STI