India's wholesale inflation rises to 1.32 pct in September

Source: Xinhua Published: 2020/10/14 17:54:27

A labor carries a sack of onions at a wholesale market in New Delhi, India, on Dec. 5, 2019. The onion prices across Indian states continue to soar as government promised to import the edible bulbs from foreign countries. Photo:Xinhua

India's wholesale price index (WPI) rose to 1.32 percent in September, data released by the federal commerce and industry ministry on Wednesday said.

"The annual rate of inflation, based on monthly WPI, stood at 1.32 percent (provisional) for the month of September 2020 as compared to 0.33 percent during the corresponding month of the previous year," a statement issued by the ministry said.

The increase has been attributed to the rising food prices ahead of the festival season.

September's increase has marked a second straight month in which wholesale prices moved higher, amid supply disruptions despite the strategic lifting of restrictions imposed in late-March to curb the spread of the ongoing COVID-19 pandemic. In August the WPI stood at 0.16 percent.

Wholesale inflation or the rate of increase in wholesale prices, is determined by the WPI.

Until August, wholesale inflation had remained in the negative territory (deflation) for four months in a row. Wholesale deflation was estimated at 1.57 percent in April, 3.37 percent in May, 1.81 percent in June and 0.58 percent in July.

In September, wholesale inflation in food articles stood at 8.17 percent, in contrast with 3.84 percent in the previous month, the data showed.

While the rates of cereals declined 3.91 percent last month, those of pulses climbed up 12.53 percent.

Wholesale inflation in vegetables came in at 36.54 percent in September thanks to a 107.63 percent surge in potato rates, the data showed. However, onion prices eased 31.64 percent, providing some respite to the overall WPI reading.

In the manufactured products category, wholesale inflation rose to 1.61 percent in September from 1.27 percent in the previous month.

Meanwhile, separate data released on Monday showed consumer (retail) inflation gauged by the Consumer Price Index (CPI) surged to 7.34 percent in September, its highest level recorded since January. Enditem

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