According to government data issued on Monday, wholesale inflation jumped to 12.54 percent year over year in October, up from 10.66 percent a month earlier and 1.31 percent in October 2020.
Retail inflation rose to 4.48 percent in October from 4.35 percent in September, but stayed within the Reserve Bank of India's (RBI) target range of 2-6 percent, allowing the central bank to keep its growth-friendly monetary policy in place.
"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.
Provisional Wholesale Price Index (WPI) results are provided on the 14th of each month (or the next working day) with a two-week lag from the reference month, and are compiled with data from institutional sources and selected manufacturing units around the country. The index is finalised after ten weeks, and final figures are released before being frozen, according to the Finmin release.
Inflation in the food sector fell 1.69 percent year over year in October, compared to a 4.69 percent drop in September. Inflation in manufactured goods was 12.04 percent, up from 11.41 percent a month ago.
Overall, from 24.81 percent in September to 26.09 percent in August, the fuel and electricity basket increased 37.18 percent in October. In October, oil, petroleum, and natural gas prices increased by 66.46 percent, compared to 43.92 percent a month earlier.
Inflation in potato and onion fell 51.32 percent and 25.01 percent, respectively, in October, compared to 48.95 percent and 1.91 percent in September. In October, prices for eggs, meat, and fish increased by 1.98 percent, compared to 5.18 percent in September.