WPI eases marginally but prices of pulses, veggies soar

RSTV Bureau

inflation_indiaWholesale Price Index (WPI) inflation has marginally fallen to (-)4.54 per cent in September as pulses, vegetables and onion have turned costlier than before.

The WPI-based inflation was (-)4.95 per cent in August. The overall deflationary trend continued for 11th month in a row as WPI has been in the negative zone since November 2014. In September last year, inflation was at 2.38 per cent.

Inflation in food articles inched up to 0.69 per cent in September, from (-)1.13 per cent in August.

Onion and pulses turned costlier with an inflation of 113.70 per cent and 38.56 per cent respectively during September, as per official data released on Wednesday morning.

Besides pulses and onion, the food items which became dearer in September were eggs, meat and fish (2.02 per cent), milk (2.16 per cent) and wheat (3.34 per cent). However inflation for potatoes was low at (-)57.34 per cent.

The rate of price rise in vegetables stood at (-)9.45 per cent as against (-)21.21 per cent in August.

Inflation rate in fuel and power segments was (-)17.71 per cent, while inflation in manufactured products stood at (-)1.73 per cent in September.

Meanwhile, the inflation data for July has been revised to (-)4.0 per cent, as compared to provisional estimates of (-)4.05 per cent.

The Consumer Price Index (CPI) or retail inflation for September rose to 4.41 per cent from 3.74 per cent in the previous month.

The Reserve Bank mostly tracks CPI-based inflation for its monetary policy decisions

The rise in retail inflation as well as the marginal upward movement of wholesale inflation is unlikely to have a bearing on the monetary policy of RBI. The central bank has signalled that it would wait for some more time before cutting interest rates.

Last month, RBI had reduced interest rates by 0.50 per cent and said it expects CPI inflation to reach 5.8 per cent in January 2016.

(With inputs from PTI)