Prices for potatoes and onions rose by 78.1% and 78.8% respectively in September, an acceleration from the previous month, while inflation for fruit and pulses decreased marginally from the previous month, by 12,000 respectively. 2% and 13%. File | Photo credit: The Hindu
Indian wholesale price inflation rose to 1.84% in September from 1.31% in August, with food prices rising to a two-year high of 9.5%, compared with a 10-month low in August of 3.3%, while vegetables became almost 49% more expensive. the sharpest increase in fourteen months.
Potato and onion prices rose 78.1% and 78.8% respectively in September, an acceleration from the previous month, while tomato prices rose 74.5%, a reversal from a 53% decline in August. Inflation for fruits and pulses fell marginally but remained high at 12.2% and 13% respectively.
Inflation for grains and rice fell fractionally to 8.1%, but wheat prices rose faster in September at 7.6%. Milk inflation cooled slightly to 3.2%, while egg, meat and fish prices fell 0.8%, marking the second straight month of year-on-year price decline.
Manufactured food products saw inflation of 5.5% in September, while vegetable and animal oils and fats rose 10.5%, albeit on a favorable basis last year when prices for both had fallen.
Despite the recovery from food price increases, the Wholesale Price Index (WPI) rose slightly due to fuel and energy prices falling by more than 4% compared to September last year, and industrial product inflation easing slightly to 1 %.
On a month-on-month basis, the WPI rose a mild 0.06%, with the food index posting the largest increase of 1.1%, while prices of manufactured goods and primary items rose 0.14% and 0.41% respectively. Fuel and electricity prices fell by 0.8% compared to August 2024 levels.
With oil and commodity prices rising this month amid the escalation of tensions in West Asia, and food price increases expected to remain high, most economists expect the WPI to rise further in October. While ICRA chief economist Aditi Nayar estimated that wholesale inflation in October could be between 2% and 2.5%, he noted that the second half of 2024-2025 could see a “faster-than-expected rise” in prices as commodity prices and geopolitical consequences could rise. conflicts continue to flare up.
Rajani Sinha, chief economist at CareEdge Ratings, expects inflation to average around 2.5% between October and March 2025, citing risks to food prices, the potential impact on supply chains and energy prices as ongoing conflicts unfold expanding, and the economic stimulus in China that has been fueled. prices of global commodities, especially industrial metals, in recent weeks.
Published – Oct 14, 2024 12:49 PM IST
