New Delhi, October 16: The wholesale inflation in September fell to 2.60 per cent as prices of food articles, led by vegetables, softened. The annual rate of inflation, based on monthly WPI, stood at 2.60% (provisional) for the month of September, 2017 as compared to 3.24% (provisional) for the previous month and 1.36% during the corresponding month in September 2016. Build up inflation rate in the financial year so far was 0.97% compared to a build up rate of 3.44% in the corresponding period of the previous year. The inflation, based on the wholesale price index (WPI), had soared to a four-month high of 3.24 per cent in August 2017 and was 1.36 per cent in September 2016.
As per government data released today, inflation in food articles tapered to 2.04 per cent in September, as against 5.75 per cent in August on a yearly basis. The inflation in onion price continued to rule high with 79.78 per cent increase in September while the vegetable prices cooled to 15.48 per cent in September, as against a high of 44.91 per cent in the previous month. In egg, meat and fish segment the rate of price rise was 5.47 per cent. Inflation in manufactured products witnessed a slight increase at 2.72 per cent, against 2.45 per cent in August.
In fuel and power segment, inflation cooled to 9.01 per cent, against 9.99 per cent in August. The index for ‘Mineral Oils’ group rose by 3.3 percent to 79.1 (provisional) from 76.6 (provisional) for the previous month due to higher price of LPG (10%), naphtha (8%), ATF (5%), petrol (3%), furnace oil, kerosene and HSD (2% each) and bitumen (1%). However, the price of petroleum coke (1%) declined.
The index for ‘Manufacture of Beverages’ group rose by 0.8 percent to 120.1 (provisional) from 119.1 (provisional) for the previous month due to higher price of bottled mineral water and aerated drinks/soft drinks (incl. soft drink concentrates) (2% each) and country liquor, beer and wine (1% each). Pulses continued to witness deflation at 24.26 per cent, likewise in potato at 46.52 per cent and wheat at 1.71 per cent. The final print of July WPI inflation remained unchanged from provisional estimate of 1.88 per cent.
Data released earlier this week showed retail inflation at 3.28 per cent in September, unchanged from August, even as vegetable and cereal prices softened. Earlier this month, the Reserve Bank kept benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7 per cent for the current fiscal. It also raised its inflation forecast to a range of 4.2 to 4.6 per cent during remainder of current fiscal as against 4 to 4.5 per cent previously.
The index for ‘Manufacture of Motor Vehicles, Trailers and Semi-Trailers’ group declined by 1.3 percent to 110.5 (provisional) from 111.9 (provisional) for the previous month due to lower price of filter element (9%), passenger vehicles (7%) and shock absorbers, piston ring/piston and compressor and shafts of all kinds (1% each). However, the price of ignition device, steering gear control system, silencer and damper, chain, release valve, head lamp, gear box and parts, brake pad/brake liner/brake block/brake rubber, others and radiators & coolers (1% each) moved up.