September wholesale price inflation eases further to 10.66%

Representational Image.

Wholesale inflation in the country eased to 10.6 percent in September from 11.4 percent in August and 11.6 percent in July helped by a weakening fuel inflation, including that of petrol, LPG and high-speed diesel.

Measured by the Wholesale Price Index (WPI), wholesale inflation in India weakened for the fourth straight month in September, per government data released on October 14. Economists said it was reaching an inflexion point. It had reached record high levels in May after the pace of inflation rose for five straight months.

The primary reason behind overall inflation having moderated in the past few months is that the rise in fuel prices have been slower and steadier. While fuel inflation has not fallen to 2020 levels, the volatility has gone down. Fuel inflation in September eased to 24.8 percent from August's 26 percent and July's 27 percent.

After a decline for 11 straight months, overall fuel prices had risen just 2 percent in February before escalating rapidly. Till May, fuel inflation had nearly doubled for three straight months hitting 37 percent. Spiraling fuel prices and therefore transport costs, have led to costs spiking economy wide.

Overall inflation was further pushed up by a 11.4 percent rise in manufacturing prices in September, similar to the rate of inflation in the category in August.