India’s wholesale inflation declined for the fourth consecutive month, aided by softening food and fuel prices.
The wholesale price index stood at 10.7% in September 2022 compared to 12.41% in August and 11.80% in September 2021. The WPI touched a record high of 15.88% in May this year.
September was the 18th straight month of double-digit WPI inflation.
“Inflation in September, 2022 is primarily contributed by rise in prices of mineral oils, food articles, crude petroleum and natural gas, chemicals and chemical products, basic metals, electricity, textiles, etc., as compared to the corresponding month of the previous year,” according to a statement from the Union Ministry of Commerce and Industry.
Inflation in food articles eased to 11.03% in September, as against 12.37% in August. Inflation in vegetables rose to 39.66% during the month, as against 22.29% in August. Inflation in fuel and power came in lower at 32.61% in September, as against 33.67% in August. The inflation in case of manufactured products was 6.34%. For oilseeds, it fell 16.55%.
The Reserve Bank of India looks at retail inflation to frame the monetary policy. Retail inflation remained above the central bank’s upper tolerance threshold of 6% for the ninth month in a row in September. It was at five-month high of 7.41% last month.
To tame the stubbornly high inflation, RBI has hiked the key interest rate four times this year to 5.90% — the highest since April 2019.