The wholesale inflation has been rising since May and hit its seven month peak during September
The wholesale price index (WPI) based inflation has come in at 6.46% for September. This is higher than the 6.1% recorded in the previous month.
According to data released by Ministry of Commerce and Industry on Monday, WPI based inflation stood at a seven-month high of 6.46% in September against 6% in August.
The WPI-based inflation for July has now been revised upwards to 5.85% as compared to 5.79% reported earlier.
Onions drove up inflation up as prices rose by a massive 322% against 244% increase in August. This is probably an all-time high. As a result, food inflation rocketed to over a 3-year high of 18.4% in September against 18.2% in the previous month.
The build up inflation rate in the financial year so far was 5.64% compared to a build up rate of 4.84% in the corresponding period of the previous year.
Also, the wholesale inflation for the second quarter now stands at 6.13% from 4.83% in the previous quarter.
The prices of petrol rose 9.64%. However, fuel inflation moderated in September as it scaled down to 10.08% from 11.34%. Inflation for manufactured items continued to remain low as it stood at 2.03%, however, up from 1.9% price rise in the previous month.
The inflation rate for June has been revised upwards to 5.85% from the earlier estimate of 5.75%.
This will add to the worry of Reserve Bank of India (RBI) as it has previously raised concerns over rising inflation. And it was inflation that had prompted the central bank to raise interest rates in its mid-term monetary policy. The RBI had raised repo rate by 25 basis points to 7.5% in September.
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