WPI inflation rises to (-)3.81% in October; pulses, onions costlier
Deflationary pressure eased a bit with inflation rate moving up slightly to (-)3.81% in October as pulses, vegetables and onion turning costlier.business Updated: Nov 16, 2015 14:11 IST
Deflationary pressure eased a bit with inflation rate moving up slightly to (-)3.81% in October as pulses, vegetables and onion turning costlier.
This is 12 month in a row when the inflation at wholesale level remained in the negative territory. It has been in the negative zone since November last year.
The Wholesale Price Index-based inflation was (-)4.54% in September. In October last year, it was 1.66%.
Pulses and Onion among the food items category turned costlier with inflation at 52.98% and 85.66% respectively during October.
The rate of price rise in case of vegetables was at 2.56% as against (-)19.37% in the same month last year, as per official data released today.
Besides pulses and onion, the food items which became dearer during the month were milk (1.75%) and wheat (4.68%). However, inflation rate in case of potato was in the negative zone, (-)58.95%.
Inflation rate in fuel and power segment was (-)16.32%, while that in manufactured products was (-)1.67% in September.
Inflation for August has been revised to (-)5.06%, from the provisional estimate of (-)4.95%.
The Reserve Bank would take into account WPI number for October while deciding on policy rate in its December 1 monetary policy review. RBI mostly tracks the Consumer Price Index-based retail inflation for its monetary policy decisions.
Rising for the third straight month, retail inflation has climbed to 5% in October, as against 4.62% in the same month a year ago due to costlier pulses and other food items.
RBI Governor Raghuram Rajan earlier this month had said that the central bank is comfortable with the current rate of interest till further room is available.
In September, RBI had reduced interest rates by more than expected 0.50% and said it expects CPI inflation to reach 5.8% in January 2016.