Based on the Wholesale Price Index (WPI) data, the annual rate of inflation decreased to 10.7% (provisional) in September 2022 from the 12.41% recorded in August 2022. The price increases of mineral oils, food items, crude oil and natural gas, chemicals and chemical products, basic metals, electricity, textiles, and other items were the main causes of inflation in September. WPI tracks changes in the prices of products that wholesalers sell to other firms. A stronger base and softening input prices help WPI moderation.
WPI tracks variations in the prices of goods that wholesalers sell to and exchange in large quantities with other companies. A stronger base and softening input prices help WPI moderation.
The 18th month in a row that the WPI has increased by double digits is September. In May of this year, the Wholesale Price Index (WPI) reached a new high of 15.88%. According to figures from the Ministry of Commerce and Industry, the WPI was 12.41% in August compared to 14.07% in July.
WPI covers a total of 697 commodities, including manufactured goods (16), fuel and power (16), and primary articles (117). (564). A total of 1,176 items from these three categories—primary articles (131), fuel and power (19), and manufactured products—have been suggested in the new series (1,026).
In line with this, the inflation rate for food products decreased to 11.03% in September from 12.37% in August. The segment of manufactured goods had rise of 6.34 percent. The number of Primary Articles increased by 11.73 percent. However, the fuel and electricity sector experienced a decline as the WPI figure dropped to 32.61 percent in September from 33.67 percent in August.
This week, India’s retail inflation reached 7.41%, up from 7.0% in August and 6.7% in July, largely due to increases in the cost of basic necessities like vegetables and grains, which make up the largest component of the inflation basket.
It exceeded 7% in April, May, June, and August. A high CPI will have a negative impact on households’ purchasing power, especially in our nation’s poorer regions.
For a five-year term ending in March 2026, the Narendra Modi government has instructed the central bank to keep retail inflation at 4% with a 2% margin on either side.