Wholesale inflation rises to 11.39 per cent as food and fuel costs climb

• India’s wholesale inflation climbed to 11.39 per cent in September from 9.92 per cent in August

• Inflation in manufactured products reached a series high of 9.76 per cent, with food and energy prices also rising faster

• The figures follow a rise in retail inflation to a 23-month high and the RBI’s decision to raise the repo rate to 5.50 per cent

India’s wholesale inflation accelerated to 11.39 per cent in September from 9.92 per cent in August, as higher food, manufactured goods and energy prices intensified cost pressures, government data released on Wednesday showed.

Inflation measured by the Wholesale Price Index (WPI) rose across all three categories. The food index recorded inflation of 8.66 per cent, up from 7.05 per cent in the previous month.

Manufactured products inflation reached a series high of 9.76 per cent, compared with 8.37 per cent in August. Inflation in the fuel and power category climbed to 25.85 per cent from 22.93 per cent.

The Commerce and Industry Ministry identified petroleum products, food articles, crude petroleum and natural gas, coal and lignite among the principal contributors to September’s increase.

Price rises in basic metals, chemicals and chemical products, textiles, rubber and plastic products, and electrical equipment also contributed to wholesale inflation.

The WPI has risen steadily since the start of the financial year amid disruption caused by the West Asia war and the blockade of the Strait of Hormuz, a key route for India’s crude oil supplies.

Higher global crude and fertiliser costs have fed through to food and commodity prices, adding to inflationary pressures across the economy.

The wholesale figures follow a rise in consumer prices. Retail inflation reached a 23-month high of 5.54 per cent in September, up from 4.83 per cent in August, according to data released earlier this week. A sharp increase in food prices drove that rise.

Last week, the Reserve Bank of India’s Monetary Policy Committee raised the benchmark repo rate by 25 basis points to 5.50 per cent.

With IANS inputs