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WPI inflation slows to 3.57% as vegetable prices soften

Press Trust of India  |  New Delhi 

Wholesale eased to 3.57 per cent in September as food articles, led by vegetables, witnessed softening of prices.

The wholesale price-based inflation, reflecting the annual rate of price rise, in August stood at 3.74 per cent. In September 2015, was (-)4.59 per cent.

Wholesale Price Index (WPI) in vegetables witnessed deflationary pressures and was recorded at (-)10.91 per cent in September. in this category had scaled a high of 28.45 per cent in July.

This was aided by data for onion, which was at (-)70.52 per cent.

Pulses continued to rule high at 23.99 per cent in September, according to the Commerce Ministry data.

Potato, a daily consumable vegetable, witnessed maximum inflationary pressure at 73.31 per cent. in fruits rose 14.10 per cent during the month.

Overall, the food basket showed good moderation with at 5.75 per cent in September, as against 8.23 per cent in August.

The WPI, which was in the negative zone from November 2014 to March 2016, had been rising for six months till August. In September, the has slowed.

The print for manufactured articles read at 2.48 per cent in September, as against 2.42 per cent in August.

The rate of in sugar was at 32.92 per cent and that for petrol was 1.25 per cent.

The for July has been revised upwards at 3.72 per cent, against provisional estimate of 3.55 per cent.

The wholesale in September is in sync with the retail which eased to a 13-month low of 4.31 per cent in the month.

The all-powerful Monetary Policy Committee headed by RBI Governor Urjit Patel last week cut benchmark interest rates by 0.25 per cent to 6.25 per cent.

While he had signalled more tolerance towards inflation, the easing in CPI data was in line with the RBI's forecast for average 5 per cent in fourth quarter of 2016. This, many expect, would create more room for cuts.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, October 14 2016. 12:57 IST