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Wholesale inflation at 6-month high of 3.59%; vegetables get 37% costlier

WPI-based inflation in September had been the highest since April's 3.85%

Press Trust of India  |  New Delhi 

A vendor arranges vegetable at his stall in a market in Mumbai. Photo Reuters
A vendor arranges vegetable at his stall in a market in Mumbai. Photo Reuters

at the wholesale level rose to six-month high of 3.59 per cent in October as the prices of food articles, led by onions and vegetables, rose sharply. Inflation, based on the (WPI), was 2.60 per cent in September. In October last year, it was 1.27 per cent. Last month's was the highest since April, when it was 3.85 per cent. The government data released on Tuesday showed that in food articles more than doubled to 4.30 per cent in October. For vegetables, it soared to 36.61 per cent last month as against 15.48 per cent in September. In case of onions, skyrocketed to 127.04 per cent, while for the eggs, meat and fish segment the rate of price rise was 5.76 per cent. in manufactured products saw a slight dip to 2.62 per cent, as against 2.72 per cent in September. In the fuel and power segment, rose to 10.52 per cent, as against 9.01 per cent in September. Fuel has remained high for the past three months as petrol and diesel prices continued to rule high tracking global crude oil rates.

Power tariffs shot through the roof on lower domestic production. Pulses continued to witness deflation at 31.05 per cent. Likewise, in potato deflation was at 44.29 per cent and wheat at 1.99 per cent. The final print of August remained unchanged at 3.24 per cent. As per the (CPI) data released yesterday, retail for October rose to a seven-month high of 3.58 per cent on costlier food items, especially Besides, industrial production for September expanded at 3.8 per cent, on poor showing by the manufacturing sector coupled with decline in consumer durables output. Last month, the Reserve Bank kept benchmark interest rate unchanged on fears of rising while lowering growth forecast to 6.7 per cent for the current fiscal. RBI also raised its forecast to the 4.2-4.6 per cent range for the rest of the current fiscal as against 4-4.5 per cent previously.

First Published: Tue, November 14 2017. 13:16 IST