The wholesale price index-based (WPI) inflation declined to 10.66 percent in September over the same month in the previous year. The inflation is lower than the 11.16 percent recorded in August 2021. CNBC-TV18 poll of economists pegged WPI inflation at 11.4 percent.
Food prices helped moderate inflation even as crude petroleum witnessed a spike. However, it was in double-digits for the sixth consecutive month. In September 2020, inflation was 1.32 percent.
In India, WPI is the main measure of inflation. It measures the price of a basket of wholesale goods that are broadly divided into three groups: fuel and power; primary articles (like food articles), and manufactured products (basic metals, food products, chemicals, and textiles).
The high rate of inflation in September 2021 is primarily due to the rise in prices of mineral oils, basic metals, non-food articles, food products, crude petroleum and natural gas, chemicals and chemical products etc. as compared to the corresponding month of the previous year, the Commerce and Industry Ministry said in a statement.
Inflation in food articles eased for the fifth straight month, recording (-) 4.69 per cent in September from (-) 1.29 per cent in August, mainly due to easing vegetable prices.
Pulses prices continued to spike at 9.42 percent. Inflation in the fuel and power basket was 24.91 percent in September, against 26.09 percent in the previous month.
The rise in crude petroleum and natural gas prices was 43.92 percent in September over 40.03 percent in the previous month.
In manufactured products, inflation stood at 11.41 percent during the month. The RBI, which mainly takes into account retail inflation in its monetary policy, earlier this month kept interest rates unchanged at record lows. Retail inflation in September too slowed to a five-month low of 4.4 percent on moderating food prices.