According to the government data released Monday, food articles witnessed hardening of prices with deflation at 0.21 per cent September as against 4.04 per cent in August.
The 5.13 per cent inflation is the highest in two months, and a higher inflation than this level was last seen in July at 5.27 per cent.
NEW DELHI: India’s wholesale price inflation (WPI) surged to 5.13% in September from 4.53% in August, data released by the commerce and industry ministry on Monday showed.
It was 3.14% in September last year.
Primary articles inflation was up to 2.97% after declining 0.15% in August.
“The rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group increased from -2.25% in August to 0.14% in September,” the ministry said in an official release.
Inflation in paddy, milk and oilseeds declined while that in cereals, wheat and potato increased to 5.54%, 8.87% and 80.13%, respectively.
Data released last week showed a moderate rise in India’s retail inflation to 3.77% in September from 3.69% in the previous month.
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“It suggests though the demand conditions in the economy have remained strong the pace of demand growth is gradually declining,” said Devendra Kumar Pant, chief economist, India Ratings & Research.
In the wholesale basket, the pace of decline in inflation slowed for onions, and eggs and meat.
Manufactured product index grew 4.22% whereas fuels inflation rose 16.65% from 17.73% in August.
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Pant said the future inflation trajectory would depend on the response of mandi prices with respect of new minimum support prices, and the movement of crude oil price and value of currency.
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