Wholesale price index (WPI)-based inflation rate rose for the third straight month to an 8-month high of 1.48 per cent in October, from 1.32 per cent the previous month. The trend of rising WPI inflation, follows CPI inflation, which has been consistently trending higher over the last few months.
This may force the Reserve Bank of India constituted Monetary Policy Committee to hold interest rates steady in its forthcoming monetary policy meet.
The index for primary group increased by 1.40% to 152.4 (provisional) in October, 2020 from 150.3 (provisional) for the month of September, 2020. Prices of Non-food Articles (2.37%), Food Articles (1.37%) and Minerals (0.66%) increased in October, 2020 compared to September, 2020. Prices of crude petroleum & natural gas remain unchanged.
The Food Index consisting of 'Food Articles' from Primary Articles group and 'Food Product' from Manufactured Products group have increased from 157.6 in September, 2020 to 159.3 in October, 2020. The food index has a weight of nearly 24.38 per cent in the total index.