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Wholesale inflation rose to a six-month high of 3.59 per cent in October from 2.6 per cent in September as food items and fuel became more expensive.
WPI inflation was much lower at 1.27 per cent in October 2016.
Data released on Tuesday showed that WPI Food Index consisting of food articles from primary articles group and food product from manufactured products group increased to 3.23 per cent in October, 2017 from 1.99 per cent in September.
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However, WPI inflation in manufactured items eased marginally to 2.62 per cent in October from 2.72 per cent a month ago.
Farm gate prices of vegetables rose by 36.61 per cent last month as against 15.48 per cent in September. Similarly, WPI inflation in onions jumped up by 127.04 per cent, while for the eggs, meat and fish segment the rate of price rise was 5.76 per cent in October.
“The further spike in global crude oil prices as well as domestic vegetable prices, would keep the WPI inflation firm in November 2017,” said Aditi Nayar, Principal Economist, ICRA.
Fuel, power
PTI reports : In the fuel and power segment, inflation rose to 10.52 per cent, as against 9.01 per cent in September. Fuel inflation has remained high for the past three months as petrol and diesel prices continued to rule high, tracking global crude oil rates. Power tariffs shot through the roof on lower domestic production.
Deflation in pulses, potato
Pulses continued to witness deflation at 31.05 per cent. Likewise, in potato deflation was at 44.29 per cent and wheat at 1.99 per cent.
The final print of August WPI inflation remained unchanged at 3.24 per cent.
According to the Consumer Price Index (CPI) data released yesterday, retail inflation for October rose to a 7-month high of 3.58 per cent on costlier food items, especially vegetables.
Besides, industrial production for September expanded at 3.8 per cent, on poor showing by the manufacturing sector coupled with decline in consumer durables output.
Last month, the Reserve Bank kept benchmark interest rate unchanged on fears of rising inflation, while lowering the growth forecast to 6.7 per cent for the current fiscal.
The RBI also raised its inflation forecast to the 4.2-4.6 per cent range for the rest of the current fiscal as against 4-4.5 per cent previously.
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