WPI Oct Inflation At - 3.81% vs - 4.54% in Sept

Business

oi-Sunil

By Sunil Fernandes

Updated: Monday, November 16, 2015, 16:00 [IST]

The October Wholesale Price Index inflation rose to -3.81 per cent in the month of Oct, as against -4.54 per cent seen in Sept.

The rise was largely on the back of food articles inflation, which was placed at 2.44 per cent vs 0.69 per cent in the month of Sept.

Oct primary articles WPI inflation was at -0.36% vs -2.09% in Sept, while the Oct fuel and power WPI inflation was at -16.32% vs -17.71% in Sept.

The WPI inflation for the month of Aug, now stands revised to -5.06 per cent. The rise in the WPI inflation was in line with the rise in CPI inflation, which has been inching up. This is on the back of a rise in inflation, particularly daily use items like Dal, which has shot up to almost Rs 200 per kg.

Analysts see the possibility of Inflation trending upwards, especially CPI inflation, which is likely to edge towards the 5 per cent mark once again.

A drop in inflation has already seen the Reserve Bank of India cut interest rates by 125 basis points this year. However, it is unlikely that the central bank would cut interest rates going forward, given the upward trajectory of CPI inflation, thanks to an increase in food prices.

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