Wholesale Inflation Surges To 2.36% In October; Increase In Food Prices Drive The Spike

After the retail inflation data that was released on November 12, the data for Wholesale Inflation for the month of October has also been released.

After CPI, WPI Also Surges

The WPI or Wholesale Price Index for October surged to 2.36 per cent. In September the WPI data stood at 1.84 per cent. This in itself was an increase from August's 1.31 per cent.

This rise in wholesale inflation is being driven by a rise in the prices of food articles.

This rise in the wholesale inflation rate in the 10th month of the year marks a 28.26 per cent Month-on-Month increase in the rate of inflation.

Compared to the month of August, the wholesale inflation surged by a mammoth 80.15 per cent, when the WPI rate stood at 1.31 per cent.

This surge in the rate of inflation was largely driven by the increase in the prices of Primary Articles. Here, the category of primary articles includes essential items, including food.

The rate of inflation on primary articles jumped to 8.09 per cent, compared to 6.59 per cent in September, thereby marking an increase of over a percentage point.

Food Inflation Adds To Surge

When it comes to 'Fuel and Power', another category in the mix, the inflation rate stood -5.79 per cent, despite the growing uncertainty owing to vacillations in the international market.

Looking further into increase in numbers. The rate of inflation on Food Articles alone increased to 13.54 per cent, which is greater than September's 11.53 per cent. This increase is even bigger when compared to the year-on-year data. The rate of inflation for October 2023 stood at 3.17 per cent.

Vegetable Inflation at 63 per cent

The rate of inflation on Vegetables was one of the biggest contributors, as the surge stood at 63.04 per cent, compared to 48.73 per cent in September and -20.72 per cent in October of 2023.

In this, when we look at some of the staples of the Indian kitchen, the rate of inflation on Potatoes stood at 78.73 per cent. The rate of Onions stood at 39.25 per cent. Whenit comes to Milk, the increase in price amounted to 3.00 per cent.

India's national inflation or Consumer Price Index (CPI) for October rose to 6.21 per cent, compared to 5.49 per cent in Septmeber, thereby by rising in random to the WPI increase.