WPI inflation at 12.54% for Oct; highest since May

The Ministry of Commerce & Industry released the annual rate of inflation figures for the month of October on Monday. The ministry stated that the annual rate of inflation for October increased to 12.54 per cent (provisional), as against 1.31 per cent in October 2020. Wholesale price index is at 139.1.

“The high rate of inflation in October 2021 is primarily due to rise in prices of mineral oils, basic metals, food products, crude petroleum & natural gas, chemicals and chemical products etc. as compared to the corresponding month of the previous year,” the ministry said.

WPI inflation is the highest since May this year, when it had touched 13.11 per cent. The wholesale price-based inflation had eased to 10.66 per cent in September, aided by moderating food prices.

The index for primary articles group increased by 3.10 per cent to 159.7 (provisional) in October, 2021 from 154.9 (provisional) for the month of September, 2021. Prices of crude petroleum and natural gas increased to 9.48 per cent and food articles to 5.05 per cent as compared to September. Prices of non-food articles declined to - 4.59 per cent and minerals to - 4.16 per cent as compared to September.

The index for fuel and power group increased by 8.72 per cent to 124.7 (provisional) from 114.7 (provisional) for the month of September. Prices of electricity increased 18.84 per cent, mineral oils 7.74 per cent and coal 0.94 per cent.

The index for manufactured products increased by 0.82 per cent to 134.9 (provisional) in October from 133.8 (provisional) for the month of September.

“The Food Index consisting of 'Food Articles' from Primary Articles group and 'Food Product' from Manufactured Products group have increased from 159.8 in September, 2021 to 164.8 in October, 2021. The rate of inflation based on WPI Food Index increased from 1.14 per cent in September, 2021 to 3.06 per cent in October, 2021,” the ministry stated.

Also read: September WPI inflation eases to 10.66% on lower food prices