October WPI at 5-month high

Ministry of Commerce & Industry released its data on Wholesale Price Index (WPI) on November 15, 2021.

Key Points

  • As per Ministry’s data, provisional Wholesale Price Index (WPI) based inflation have been accelerated to a five-month high to 12.54% in October 2021 as against 66% recorded in September.
  • This rise was attributed to an increase in fuel and manufacturing prices.
  • Report notes that, benchmark inflation print has remained in double digits for seven consecutive months.

Benchmark inflation Print

The benchmark inflation print for October 2020 was 1.31%. The high rate of inflation in October 2021 is due to an increase in prices of mineral oils, basic metals, crude petroleum & natural gas, food products, chemicals and chemical products etc as compared to the corresponding month of the previous year.

Consumer Price Inflation index-based inflation

The consumer price inflation index-based inflation in India, increased to 4.48% in October 2021 as compared to October 2020. It was higher than 4.35% recorded in September 2021.

Fuel & Power component of Index

Sharpe increase was witnessed in Fuel & Power component of the index. It increased 37.18% on a yearly basis in October 2021 as compared to 24.8% increase in the September 2021. Prices of manufactured products in October 2021 increased by 12.04% as compared to same period in 2020.

Food Inflation and LPG prices

Food inflation decreased by 1.7% October as compared to 7.05% in 2020. LPG prices increased by 54.3% in October 2021 as compared to 2020.

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