October WPI at 5-month high

November 15, 2021

Ministry of Commerce & Industry released its data on Wholesale Price Index (WPI) on November 15, 2021.

Key Points

As per Ministry’s data, provisional Wholesale Price Index (WPI) based inflation have been accelerated to a five-month high to 12.54% in October 2021 as against 66% recorded in September.
This rise was attributed to an increase in fuel and manufacturing prices.
Report notes that, benchmark inflation print has remained in double digits for seven consecutive months.

Benchmark inflation Print

The benchmark inflation print for October 2020 was 1.31%. The high rate of inflation in October 2021 is due to an increase in prices of mineral oils, basic metals, crude petroleum & natural gas, food products, chemicals and chemical products etc as compared to the corresponding month of the previous year.

Consumer Price Inflation index-based inflation

The consumer price inflation index-based inflation in India, increased to 4.48% in October 2021 as compared to October 2020. It was higher than 4.35% recorded in September 2021.

Fuel & Power component of Index

Sharpe increase was witnessed in Fuel & Power component of the index. It increased 37.18% on a yearly basis in October 2021 as compared to 24.8% increase in the September 2021. Prices of manufactured products in October 2021 increased by 12.04% as compared to same period in 2020.