After Retail, Wholesale Price Inflation Also Rises To Four-Month High, Driven By Food Costs; Potatoes, Onions Costly

According to government data released Thursday (14 November), wholesale price inflation climbed to a four-month high of 2.36 per cent in October, driven by rising costs of food items—especially vegetables—and manufactured goods.

In September 2024, the wholesale price index (WPI)-based inflation was 1.84 per cent, while in October of the previous year, it stood at (-) 0.26 per cent. Earlier, retail inflation reached a 14-month-high.

The data showed that food inflation surged to 13.54 per cent in October, up from 11.53 per cent in September, with vegetable prices leading the rise at 63.04 per cent, compared to 48.73 per cent in the prior month.

Prices for potatoes and onions remained elevated, with inflation rates of 78.73 per cent and 39.25 per cent, respectively, in October. Meanwhile, the fuel and power category recorded a deflation of 5.79 per cent, compared to a 4.05 per cent deflation in September.

Inflation in manufactured goods rose to 1.50 per cent in October, up from 1 per cent in September. October marks the second consecutive month of rising WPI inflation, with the last higher rate seen in June 2024 at 3.43 per cent.

Similarly, October was also the second consecutive month when the retail inflation rate above the Reserve Bank of India's (RBI) target range of 4 per cent (+/- 2 per cent) at 6.21 per cent.

The Ministry of Commerce and Industry attributed the increase to higher prices in food items, manufactured food products, machinery, and motor vehicles.