December 1, 2022

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October WPI inflation eases to 19-month low of 8.39 per cent

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The wholesale price-based inflation declined to a 19-month low of 8.39 per cent in October, on easing prices of fuel and manufactured items.

This is the first time in 19 months that WPI inflation print has come in single digits. The last was in March 2021 at 7.89 per cent.

Since April 2021, WPI inflation has remained in double digits for 18 months with the September print at 10.79 per cent. Inflation in October 2021 was 13.83 per cent.

“Decline in the rate of inflation in October 2022 is primarily contributed by a fall in the price of mineral oils, basic metals, fabricated metal products, except machinery and equipment; textiles; other non-metallic mineral products; minerals; etc,” the Commerce and Industry Ministry said on Monday.

Inflation in food articles in October was 8.33 per cent, against 11.03 per cent in the previous month.

Inflation in vegetables was at 17.61 per cent during the month, against 39.66 per cent in September.

In the ‘fuel and power’ basket, inflation was 23.17 per cent, while in manufactured products it was 4.42 per cent during October.

The Reserve Bank takes into account retail inflation for formulating monetary policy. The October retail inflation data would be released later in the day and is likely to come in at below 7 per cent.

The RBI has hiked interest rates by 190 basis points between May to September to 5.90 per cent to tame persistently high inflation, which has remained above the RBI’s upper tolerance level of 6 per cent for three consecutive quarters.

The annual wholesale price-based inflation (WPI) eased in October to 8.39 per cent year-on-year, the lowest since March 2021, helped by a fall in commodity prices, government data showed on Monday.

The October WPI inflation was lower than the Reuters forecast of 8.70 per cent and 10.70 per cent recorded in the previous month.

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