New Delhi, November 14: The Wholesale inflation stood at 3.59% for the month of October 2017 as compared to 2.60% for the previous month due to rise in food prices. The buildup inflation rate in the financial year so far was 2.03% compared to a build-up rate of 3.53% in the corresponding period of the previous year. With this, the WPI inflation touched a 6-month high in October driven by faster rises in prices of food and fuel products. The government data showed that the annual wholesale price inflation last month increased to 3.59% from a year earlier from a provisional 2.60% in September. “The official Wholesale Price Index for ‘All Commodities’ (Base: 2011-12=100) for the month of October 2017 rose by 1.0 percent to 115.5 (provisional) from 114.3 (provisional) for the previous month”, the government release said.
The rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group increased from 1.99% in September, 2017 to 3.23% in October, 2017. According to the data furnished by the Ministry of Statistics & Programme Implementation, October’s consumer price index (CPI) inflation rose to 3.58 per cent from 3.28 per cent reported for September. However, on a year-on-year (YoY) basis, the CPI inflation last month was lower than 4.20 per cent recorded in October 2016. The data further revealed that the wholesale food prices in October rose 3.23% year-on-year, compared with a 1.99% rise a month earlier, the data showed. As per reports, the rise compares with a 3.01% increase forecast by economists in a Reuters poll.
In September, the WPI inflation fell to 2.6% due to a sharp fall in food and vegetable prices, slower than the provisional 3.24% recorded in August. Prices of some vegetables like tomatoes, which had risen sharply in July, corrected in September.