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economy | IST

Oct WPI at 12.54%: Food, fuel, manufacturing uptick worrying, says RBL Bank

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Rajni Thakur, an economist at RBL Bank, on Monday, said that the month-on-month sequential increase in food, fuel and manufacturing is worrying.

Rajni Thakur, an economist at RBL Bank, on Monday, said that the month-on-month sequential increase in food, fuel and manufacturing is worrying.
“Month-on-month (MoM) sequential increase in food, fuel and manufacturing, if we look at last 6 months wholesale price index (WPI), is really worrying. It is nevertheless, seventh straight months of 10 percent plus reading on WPI and fuel and power, for example, has averaged around 26 percent in the first half and that bothers,” Thakur told CNBC-TV18.
However, she said, the firm will not be changing consumer price index (CPI) numbers currently. “We will wait for one more month to see an oil price change. If we see a material drop in global oil prices then we still remain content at the headline, but if this continues to 2 months then we are looking at CPI average moving up to 5.5-6 percent range for the full fiscal year of FY22,” said Thakur.
Her remarks come as the wholesale price-based inflation spiked to 12.54 percent in October, mainly due to a rise in prices of manufactured products and crude petroleum. WPI inflation has remained double-digit for the seventh consecutive month beginning April. Inflation in September this year was at 10.66 percent, while in October 2020 it was at 1.31 percent.
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