WPI inflation at 8-month high of 1.48% in October on costlier manufactured items

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The wholesale price-based inflation rose to an eight-month high of 1.48 percent in October, as manufactured products turned costlier.

The WPI inflation was 1.32 percent in September and zero per cent in October last year.

Food inflation in October stood at 6.37 percent, as against 8.17 percent in the previous month.

The rate of price rise in vegetables and potato remained high at 25.23 percent and 107.70 percent, respectively, during the month.

Inflation in non-food articles and minerals was higher at 2.85 percent and 9.11 percent, respectively.

In the manufactured products category, inflation stood at 2.12 percent in October, compared to 1.61 percent in September.

Prices in fuel and power basket softened to (-) 10.95 percent in October.

The retail inflation, based on the consumer price index, was 7.61 percent in October, data released last week showed.

The Reserve Bank in a report on the state of economy last week had also flagged unrelenting pressure of inflation as a downside risk confronting the prospects of economic recovery.

“The foremost is the unrelenting pressure of inflation, with no signs of waning in spite of supply management measures...There is a grave risk of generalisation of price pressures, unanchoring of inflation expectations feeding into a loss of credibility in policy interventions and the eventual corrosion of the nascent growth impulses that are making their appearance,” the RBI said.