Wholesale inflation worsens to 1.84% in September on rising food prices

Domestic wholesale inflation worsened to 1.84 per cent last month from 1.31 per cent in August, according to official data released on Monday. A spike in the prices of food items including vegetables led to the elevated overall reading of wholesale inflation, measured by the Wholesale Price Index (WPI). The data comes days after the Reserve Bank of India (RBI) maintained key policy rates at existing levels while switching to a 'neutral' stance of monetary policy from 'withdrawal of accommodation'.

Food inflation shot up to 11.53 per cent in September from 3.11 per cent the previous month, with vegetable inflation being recorded at 48.73 per cent.

Within the vegetable basket, inflation in staples like potatoes and onions stood at 78.13 per cent and 78.82 per cent, respectively, showed the data from the Ministry of Commerce & Industry. 

Deflation in the 'fuel and power' category was recorded at 4.05 per cent in September as against a deflation of 0.67 per cent in the previous month. Deflation, or negative inflation, is the rate of decrease in the prices of a given set of goods and services. 

Inflation in 'primary articles' stood at 0.41 per cent in September, with readings of 1.83 per cent in minerals, 1.31 per cent in non-food articles, and 0.86 per cent in food articles.

On the other hand, deflation in crude petroleum and natural gas stood at 5.74 per cent last month. 

Primary articles have a weightage of 22.62 per cent in the Wholesale Price Index. 

Wholesale inflation data for October will be released on November 14.

The central bank tracks consumer inflation—also known as retail inflation—primarily for devising its policy.

Separate data on consumer inflation in the country—gauged by the Consumer Price Index (CPI)—will be released at 5:30 pm on Monday. 

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