Wholesale Price Index Records 1.84% Inflation In Sept'24 Amid Rising Food Prices

The Wholesale Price Index (WPI) data for September 2024, records an annual inflation rate of 1.84 per cent, based on the 2011-12 base year. According to the Ministry of Commerce and Industry, the positive rate of inflation is attributed primarily to higher prices in food articles, food products, and the manufacturing sectors, including motor vehicles, trailers, machinery, and equipment.

In terms of the overall WPI, the index for all commodities reached 154.6 in September 2024, registering a modest monthly increase of 0.06 per cent from the 154.5 recorded in August.

Compared to the same period last year, the annual inflation rate showed an uptick, climbing from 1.31 per cent in August to 1.84 per cent in September.

The category of Primary Articles, which carries a weight of 22.62 per cent, saw the index rise by 0.41 per cent to 195.7 in September from 194.9 in the previous month.

On an annual basis, inflation for primary articles surged significantly to 6.59 per cent, up from 2.42 per cent in August. Within this group, prices of minerals increased by 1.83 per cent, non-food articles by 1.31 per cent, and food articles by 0.86 per cent.

Conversely, the prices for crude petroleum and natural gas experienced a marked decline of 5.74 per cent compared to the preceding month.

The Fuel and Power segment, accounting for 13.15 per cent of the index, recorded a decrease of 0.81 per cent in September, bringing the index down to 146.9 from 148.1 in August.

The deflationary trend in this category intensified, with the annual inflation rate dropping to -4.05 per cent, a deeper decline from -0.67 per cent in the previous month.

The decrease in mineral oil prices by 1.72 per cent largely contributed to this downward movement, while electricity prices registered a slight increase of 1.34 per cent, and coal prices remained stable.

In the Manufactured Products category, which has the largest weight of 64.23 per cent, the index inched up by 0.14 per cent to 141.8 in September.

However, the annual inflation rate for manufactured products softened to 1.00 per cent. Out of 22 sub-categories, 10 saw price increases, including food products, wearing apparel, and electronic products. On the other hand, prices declined in areas such as basic metals, textiles, chemicals, and fabricated metal products.

A significant factor contributing to the overall inflation rate was the sharp rise in the WPI Food Index, which encompasses both 'food articles' from the primary category and 'food products' from the manufactured category. The Food Index climbed from 193.2 in August to 195.3 in September.

This surge pushed the annual inflation rate for food items to a notable 9.47 per cent, up from 3.26 per cent the previous month, indicating a substantial increase in food prices.

The data further highlighted month-over-month trends over the past six months. April and July saw notable growth in wholesale prices, whereas August experienced a contraction before a modest rebound in September.

The Primary Articles category exhibited significant monthly growth in April (2.13 per cent) and July (2.86 per cent), followed by a decrease in August (-1.47 per cent). Fuel and Power continued to show a pattern of contraction, with the exception of a slight rise in July (0.88 per cent). In Manufactured Products, there were minor variations, with no significant peaks or troughs during the period.

The WPI for September 2024 was compiled based on an 86.3 per cent weighted response rate, while the final figure for July 2024 relied on a 96.0 per cent response rate. According to the revision policy, provisional figures undergo updates after a period of ten weeks.

The next WPI release, covering October 2024, is scheduled for 14 November 2024. (ANI)