New Delhi, Nov 16 : India’s annual rate of inflation based on wholesale prices jumped to 1.48 per cent in October from a rise of 1.32 per cent in September.
“The rate of inflation, based on monthly WPI, stood at 1.48 per cent (provisional) for the month of October, 2020 (over October, 2019), as compared to ‘0.00 per cent’ (standstill) during the corresponding month of the previous year,” a Ministry of Commerce and Industry statement on WPI said.
On a sub-segment basis, prices of manufactured items remained at elevated levels with a rise of 2.12 per cent from 1.61 per cent reported for September and (-) 0.93 per cent recorded during October 2019.
The expenses on primary articles, which constitute 22.62 per cent of the WPI’s total weightage, increased to 4.74 per cent.
However, it had increased in a faster pace in September 2020 at 5.10 per cent and 6.05 per cent for the corresponding month of the previous year.
The prices of food items rose by 6.37 per cent from 8.17 per cent reported for September 2020 and 9.80 per cent in October 2019.
On the commodity front, potato price increased by 107.70 per cent while it had risen by 107.63 per cent during September 2020.
Besides, onion prices in October rose 8.49 per cent against a rise of (-) 31.64 per cent in September.
Similarly, pulses became dearer by 15.93 per cent last month from 12.53 per cent in September.
The cost of the fuel and power category declined (-)10.95 per cent against a rise of (-) 9.54 per cent in September and (-) 8.09 per cent in October 2019.
Last week, data showed that the country’s retail inflation rose to 7.61 per cent in October from 7.27 per cent during September.
The retail inflation rise has mitigated any chances of a rate cut by the Reserve Bank in 2020.
“The WPI inflation recorded a fairly broad-based quickening to a higher-than-expected 1.5 per cent in October 2020.This uptick was primarily driven by a jump in the core inflation to an 18-month high 1.7 per cent in October 2020 from 1 per cent in September 2020,” said Aditi Nayar, Principal Economist, ICRA.
“However, food inflation recorded a welcome cooling in October 2020 that was only partly base-effect led,” she added.
According to Devendra Kumar Pant, Chief Economist, India Ratings & Research: “Wholesale inflation in October 2020 increased to eight months high of 1.48 per cent.Deflation in fuel, power and light group increased in October 2020 to -10.9 per cent.Manufactured group inflation increased to 19 months high of 2.1 per cent.Core inflation increased to 18 months high of 1.7 per cent in October 2020
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