In September, wholesale price-based inflation fell to 10.66 percent, aided by lower food prices, despite a rise in crude oil prices. For the sixth month in a row, WPI inflation stayed in double digits, fueling fears of inflationary pressures as energy and raw material costs continue to rise for businesses.
It was 11.39 percent in August. Inflation was 1.32 percent in September 2020.
The Wholesale Price Index (WPI) is a price index that represents the wholesale prices of a basket of goods. It is used to assess inflation, or the general rise in the price of products, in numerous nations, including India.
The WPI Food Index increased from 159.6 in August 2021 to 159.8 in September 2021, with 'Food Articles' from the Primary Articles group and 'Food Product' from the Manufactured Products category. The WPI Food Index-based inflation rate fell from 3.43 percent in August 2021 to 1.14 percent in September 2021. Meanwhile, the final Wholesale Price Index and inflation rate for 'All Commodities' for the month of July 2021 were 135.0 and 11.57 percent, respectively.
The Commerce and Industry Ministry said in a statement that the high rate of inflation in September 2021 is primarily due to increases in the prices of mineral oils, basic metals, non-food articles, food products, crude petroleum and natural gas, chemicals and chemical products, and other items, as compared to the same month the previous year.
In September, inflation in the petrol and power basket was 24.91 percent, down from 26.09 percent the previous month.
In September, crude petroleum and natural gas prices increased by 43.92 percent, compared to 40.03 percent the previous month.
During the month, inflation in manufactured goods was 11.41 percent.
The RBI, which bases its monetary policy primarily on retail inflation, kept interest rates at record lows earlier this month.