India’s Wholesale Price Index (WPI) inflation dropped to 8.39 per cent from 10.70 per cent in September—the first time it dropped below the double-digit mark since March last year, data released by the Ministry of Commerce and Industry showed.
In March 2021, wholesale inflation was at 7.89 per cent. Since then, it hovered over the double-digit mark for eighteen straight months from April 2021 to September 2022, marked by surging worldwide inflation due to increasing global volatility amid disasters caused by climate change and Russia’s war on Ukraine, hike in oil prices, among other tumultuous events.
The WPI in August was revised to 12.48 per cent from 12.41 per cent, the government data showed. In October 2021, the WPI was 13.83 per cent.
Wholesale Price Index (WPI) represents the price of goods at a wholesale stage i.e. goods that are sold in bulk and traded between organisations instead of retail consumers. It is used as a measure of inflation in some economies.
Additionally, Indian consumer price index (CPI) inflation will be announced later today. As per a poll ran by Reuters, CPI is expected to ease to 6.73 per cent last month, in the wake of weaker food price rises and a robust base year. However, it will continue to remain above the RBI’s 6 per cent upper limit.
In September 2022, the inflation rate, as measured by the annual change in the CPI, was at 7.41 per cent. The Reserve Bank of India (RBI) mainly looks at retail inflation to frame monetary policy. The RBI has raised its main repo rate by a cumulative 190 basis points since May to 5.90% to bring inflation under control.
