Wholesale inflation rises to 1.84% in September led by higher food prices

Wholesale inflation in September: India’s annual rate of inflation, based on the Wholesale Price Index (WPI), has reached 1.84 per cent (provisional) for the month of September 2024, according to data released by the government. This marks a slight decline from the 2.10 per cent recorded in July 2024. However, the continued rise in prices of essential commodities, particularly food products, contributed significantly to the inflation rate.

The index for the 'All Commodities' category increased by 0.41 per cent in September, reaching 195.7 (provisional) compared to 194.9 (provisional) in August 2024. Major drivers of inflation include food articles, food products, and other manufacturing sectors such as motor vehicles, machinery, and equipment.

The Food Index, which comprises food articles from the primary articles group and food products from the manufactured products group, rose to 195.3 in September from 193.2 in August. This resulted in a sharp increase in annual inflation for the food category, from 3.26 per cent in August to a striking 9.47 per cent in September. Key contributors to this rise were higher prices of vegetables, cereals, and pulses.

Increases were also noted in the prices of non-food articles (up 1.31 per cent), and minerals (up 1.83 per cent) in September, compared to the previous month. However, a notable decline in the prices of crude petroleum and natural gas, which dropped by 5.74 per cent, helped moderate the overall inflation rate.

The manufacturing sector also contributed to inflation, with motor vehicles, trailers, semi-trailers, and machinery and equipment seeing price hikes. Manufacturing activity has been on the rise, reflected in an upward trend in prices across various subsectors.