Wholesale inflation, measured by the Wholesale Price Index (WPI), surged to 2.36% in October, up from 1.84% in September, according to data released by the Ministry of Commerce and Industry on Thursday.
The rise in October’s WPI was primarily driven by higher costs of food items, machinery, and motor vehicles.
The index for primary articles, which includes essential commodities, rose by 2.35% in October. On a month-on-month basis, the WPI for October stood at 156.1, showing a 0.97% increase.
The Food Index climbed significantly, from 9.47% in September to 11.59% in October, highlighting the ongoing surge in food prices. Following its trend, the fuel and power category saw a slight monthly decline of 0.27%.
Manufactured goods, however, experienced a 0.49% increase, with rising costs observed in the manufacture of food products, basic metals, and transport equipment. Meanwhile, sectors such as pharmaceuticals, chemicals, and tobacco saw a reduction in prices.
The recent uptick in wholesale inflation follows the rising retail inflation, which hit 6.21% in October, surpassing the Reserve Bank of India’s tolerance range of 2-6%.
India’s retail inflation climbed to 6.21% in September, breaching the RBI’s 2-6% target in October. Food prices surged 10.87%, with rural and urban inflation at 6.68% and 5.62%, respectively. Industrial production improved, rising 3.1% in September, driven by manufacturing growth, according to MoSPI data.
Wholesale inflation tracks the changes in prices at the wholesale level, before goods reach the consumer, it reflects the average price change in goods sold in bulk, including food, fuel, and manufactured products.Unlike retail inflation, which captures the price changes felt by consumers, wholesale inflation provides insight into cost trends impacting producers and distributors.
A sharp rise in wholesale prices can indicate supply chain disruptions or increasing production costs, while a decline may suggest reduced demand or stability in supply.
Movement of Wholesale Inflation in FY25
