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WPI-based inflation fell to a six-month low of 10.66% in September

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Wholesale inflation for September 2021 decelerates due to fall in fuel and food prices

The Wholesale Price Index-based inflation fell to 10.66 per cent in September 2021 from 11.39 per cent in August 2021, as prices of primary commodities, fuel and electricity as well as food declined during the period.

According to monthly data released by the commerce ministry, wholesale inflation was at a six-month low in September but also remained at double-digit levels for the sixth consecutive month.

In September 2021, the monthly decline in WPI inflation was due to a fall in the index of the primary articles group, which stood at 154.9 in September 2021 as compared to 155.8 in August 2021.

Under this group, the prices of crude petroleum and natural gas, minerals and food items declined during September 2021 as compared to August 2021. Overall, WPI inflation for primary goods declined to 4.1 per cent in September 2021, as against 6.2 per cent in August 2021.

Similarly, the fuel and power index declined to 114.7 in September 2021 as compared to 116 in August 2021. Under this index, the prices of mineral oils declined, while the prices of coal and electricity remained unchanged.

The overall WPI inflation for fuel and power fell to 24.8 per cent in September 2021 from 26 per cent in August 2021

Also the WPI based inflation for the food index fell to 1.14 per cent in September 2021 from 3.4 per cent in August 2021.

WPI inflation for manufactured products, however, rose slightly to 11.41 per cent in September 2021 from 11.39 per cent in August 2021.

However, at the same time, compared to the wholesale inflation rate of 1.32 per cent in September 2020, the rate of 10.66 per cent for September 2021 is an almost 10-fold increase and was mainly on account of rise in prices of mineral oils, basic food, non-compound and non-metallic oils. Foodstuffs, food products, crude petroleum as well as chemical products.

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