Friday, 03 February 2023

Wholesale inflation rose to five-month high of 12.54%

Wholesale inflation rose to five-month high of 12.54%

India’s wholesale inflation speeds up to a five-month high of 12.54% in October from last year, as higher energy and power costs stoked broad-based prices, from essential non-food items to cars, an official data post on Monday revealed.

The increase in WPI or wholesale price index, which measures what producers charge retailers, follows an increase in retail prices. Last week, the CPI for October came in at 4.48% compared to a 4.35% increase in September.

Monday’s statistics showed that core wholesale inflation, which excludes volatile categories of food and energy, is an indicator of entrenched prices, reached an all-time high of 11.9% in October this year.

A globe supply squeeze has weighed on prices in several key economies. In October, US consumer inflation hit a three-decade high, prompting analysts to expect more than a short phase of globally raised prices.

Wholesale inflation rose to five month high of 12 54 1pixabay image

Read More: Retail inflation of India drops to 4.35% in September

Shipping and Supply constraints, rising demand for goods and services, and higher wages heavily influence the global economy. These developments have also been a drag on the Indian economy, which imports vital raw materials and components to meet internal demand.

Though still low-spirited, food inflation increased to 3.1 percent in October from 1.1 percent in September due to the high inflation in edible oils and fruits. “Edible oil inflation at 32.6% in October 2021 continues to be very high, but has declined from the record 51.9% in May 2021 due to import duty cuts and the arrival of Kharif crop,” said Sunil K Sinha, principal economist, India Ratings and Research Ltd.

Indians spent a stumble ₹1.25 lakh crore on consumer goods during the Diwali festive blitz. But they faced a shortage of electronics and home appliances, which were priced higher by up to 12% compared to last year in October, according to data from the Consumer Electronics and Appliances Manufacturers Association.

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