For the first time after a gap of 19 months, the wholesale price-based inflation (WPI) has dropped to a single digit number of 8.39 per cent in October. Last year in October, inflation numbers stood at 13.83 per cent. This decline in WPI comes after an ease in prices of fuel and manufactured items, said reports.
The last time the WPI was in single digit was in the month of March in 2021, when it was at 7.89 per cent. Since April 2021, WPI inflation remained in double digits for 18 months, with the September print at 10.79 per cent.
The commerce and industry ministry said on Monday (November 14) that the decline in the rate of inflation in October 2022 is primarily contributed by fall in the price of mineral oils, basic metals, fabricated metal products, except machinery and equipment, textiles; other non-metallic mineral products; minerals etc.
The inflation in food articles in October was lower than last month at 8.33 per cent, (compared to 11.03 per cent in the previous month); while inflation in vegetables was at 17.61 per cent in October, against 39.66 per cent in September.
In the ‘Fuel and Power’ basket, inflation was 23.17 per cent, while in manufactured products it was 4.42 per cent during October.
The Reserve Bank of India factors in retail inflation while formulating monetary policy. The October retail inflation data would be released later in the day and is likely to come in at below 7 per cent. The RBI has hiked interest rates by 190 basis points between May to September to 5.90 per cent to rein in persistently high inflation, which has remained above the RBI’s upper tolerance level of 6 per cent for three consecutive quarters.