INSUBCONTINENT EXCLUSIVE:
The RBI tracks consumer inflation primarily for formulating its monetary policyWholesale inflation in the country rose in September due to
rising food prices ahead of the festival season
Wholesale inflation - or the rate of increase in wholesale rates of essential commodities - came in at 1.32 per cent last month, increasing
from 0.16 per cent in August, government data released on Wednesday showed. That marked a second straight month in which wholesale prices
moved higher, amid supply disruptions despite strategic lifting of restrictions imposed in late-March to curb the spread of
COVID-19. Till August, wholesale inflation, measured by the Wholesale Price Index WPI, had remained in the negative territory (deflation)
Wholesale deflation was estimated at 1.57 per cent in April, 3.37 per cent in May, 1.81 per cent in June and 0.58 per cent in July.In
September, wholesale inflation in food articles stood at 8.17 per cent, in contrast with 3.84 per cent in the previous month, the data
showed.While the rates of cereals declined 3.91 per cent last month, those of pulses climbed up 12.53 per cent.Wholesale inflation in
vegetables came in at 36.54 per cent in September thanks to a 107.63 per cent surge in potato rates, the data showed
However, onion prices eased 31.64 per cent, providing some respite to the overall WPI reading.In the manufactured products category,
wholesale inflation rose to 1.61 per cent in September from 1.27 per cent in the previous month.Separate data released on Monday showed
consumer inflation - gauged by the Consumer Price Index, and measuring the rate of increase in retail prices of commodities, jumped to 7.34
per cent in September, its highest level recorded since January, increasing chances of a further delay in a rate cut by the central bank to
bolster the shrinking economy.The RBI tracks consumer inflation primarily for formulating its monetary policy.
