WPI inflation surges to 1.68%, hits 8-month high
Wholesale price index (WPI)-based inflation rate rose for the third straight month to an 8-month high of 1.48 percent in October, from 1.32 percent the previous month. The trend of rising WPI inflation follows CPI inflation, which has been consistently trending higher over the last few months.
This may force the Reserve Bank of India constituted Monetary Policy Committee to hold interest rates steady in its forthcoming monetary policy meet.
The index for the primary group increased by 1.40% to 152.4 (provisional) in October 2020 from 150.3 (provisional) for the month of September, 2020. Prices of Non-food Articles (2.37%), Food Articles (1.37%), and Minerals (0.66%) increased in October 2020 compared to September 2020. Prices of crude petroleum & natural gas remain unchanged. The Food Index consisting of 'Food Articles' from the Primary Articles group and 'Food Product' from the Manufactured Products group has increased from 157.6 in September 2020 to 159.3 in October 2020. The food index has a weight of nearly 24.38 percent in the total index.