India's wholesale price inflation (WPI)-based inflation eased for the fourth consecutive month in September to 10.66 per cent, driven by a sharp contraction in food prices even as inflation of manufactured items picked up marginally.
WPI has remained in the double-digit for the sixth consecutive month beginning April, and a lower rate of inflation was recorded in March at 7.89 per cent. The primary reason for the overall inflation having moderated in the past few months is that the rise in fuel prices have been slower and steadier. Fuel inflation in September eased to 24.8 percent from August's 26 percent and July's 27 percent.
Data released by the industry department showed that food inflation contracted to 4.69 per cent in September compared with a 1.29 per cent fall a month ago, while that of manufactured products rose to 11.41 per cent from 11.39 per cent in August, reported Livemint.
Among food items, the prices of potato (-48.95 per cent), onion (-1.91 per cent), fruit (-1.27 per cent) contracted, while prices of pulses rose up by 9.42 per cent. Among manufactured items, prices of basic metals (26.71 per cent), textiles (16.81 per cent) rose steeply.
Rise In Prices Of Mineral Oils, Basic Metals
"The high rate of inflation in September 2021 is primarily due to rise in prices of mineral oils, basic metals, non-food articles, food products, crude petroleum & natural gas, chemicals and chemical products etc. as compared to the corresponding month of the previous year," the Commerce and Industry Ministry said in a statement. Inflation in August was 11.39 per cent, while in September 2020, it was 1.32 per cent.
Earlier this week, the International Monetary Fund (IMF) raised its inflation forecast for India to 5.6 per cent for this fiscal from the 4.9 per cent estimated in April, citing growing inflationary risks worldwide.
Data released showed that India's retail inflation went down to a five-month low of 4.35 per cent in September.