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Sept wholesale price inflation eases to 10.66%
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SME Times News Bureau | 14 Oct, 2021
Lower prices of primary goods, along with food articles, eased India's September 2021 wholesale inflation on a sequential basis.
The annual rate of inflation, based on wholesale prices, eased to 10.66 per cent last month from 11.39 per cent in August.
However,
on a YoY basis, the Wholesale Price Index (WPI) data furnished by the
Ministry of Commerce and Industry has risen exponentially over September
2020, when it stood at 1.32 per cent.
"The high rate of
inflation in September 2021 is primarily due to rise in prices of
mineral oils, basic metals, non-food articles, food products, crude
petroleum and natural gas, chemicals and chemical products etc, as
compared to the corresponding month of the previous year," the ministry
said in its review of 'Index Numbers of Wholesale Price in India' for
September.
"The month over month change in WPI index for the month of September, 2021 (as compared to August, 2021) was 0.07 per cent."
As
per the data, the primary articles segment, which has one of the
highest weightage in the WPI, increased at a slower rate of 4.10 per
cent in September, 2021 than 6.20 per cent reported for August.
In
the fuel and power segment, which has a weightage of 13.15 per cent,
the rise in inflation was recorded at 24.81 per cent from 26.09 per cent
in August 2021.
Under this category, prices of mineral oils (-)
1.75 per cent declined in September, 2021 as compared to August, 2021,
whereas prices of coal and electricity remain unchanged.
However,
cost of manufactured products, which has a weightage of 64.23 per cent,
increased at a faster rate of 11.41 per cent from 11.39 per cent.
Nevertheless,
the growth rate of WPI food index consisting of food articles from the
primary articles group and food products from manufactured products
group eased to 1.14 per cent from 3.43 per cent.
ICRA Chief
Economist Aditi Nayar said: "The WPI inflation mildly trailed our
expectation for September 2021, which offers a modicum of comfort given
the looming concerns related to coal, crude oil, metals and logistics
costs, as well as a depreciating INR."
"The sequential decline
in the WPI inflation in September 2021 relative to August 2021
benefitted from primary food items slipping into a series-low
disinflation of 4.7 per cent, with a sharp 32.4 per cent YoY decline in
vegetable prices, and a base-effect led easing in the inflation for
fuel and power."
India Ratings and Research's Principal Economist
Sunil Kumar Sinha said: "This is the sixth consecutive month in which
wholesale inflation has stayed in double-digit level. The moderation in
September 2021 came due to weakening of the momentum effect."
"Further
with the spread of the Delta variant of Covid-19 in many countries
across the globe, even global supply chain or trade is facing fresh
challenges leading to higher transportation costs. Against this
backdrop, India Ratings and Research believes that wholesale inflation
are likely to remain elevated in the near term."
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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