India's wholesale price inflation came in at a provisional 10.66% on year for the month of September 2021 as compared to 1.32% in September 2020, data from commerce ministry showed on Thursday. 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 the corresponding month of the previous year.
The index for primary articles declined by (-0.58%) to 154.9 (provisional) in September 2021 from 155.8 (provisional) for the month of August 2021. Prices of Crude Petroleum & Natural Gas (-4.06%), Minerals (-2.34%) Food Articles (-0.25%) and Non-food Articles (-0.31%) declined in September 2021 as compared to August 2021. The index for Fuel & Power declined by (-1.12%) to 114.7 (provisional) in September 2021 from 116.0 (provisional) for the month of August 2021. Prices of Mineral Oils (-1.75%) declined in September 2021 as compared to August 2021. Prices of coal and electricity remain unchanged. The index for Manufactured Products increased by (0.60%) to 133.8 (provisional) in September 2021 from 133.0 (provisional) for the month of August 2021. The increase in prices is mainly contributed by manufacture of basic metals; food products; chemicals and chemical products; machinery and equipment; motor vehicles, trailers, semi-trailers; and fabricated metals. Some of the groups that have witnessed decrease in prices are manufacture of electrical equipment; computer, electronic and optical products; printing and reproduction of recorded media, and beverages in September 2021 as compared to August 2021.
The WPI Food Index consisting of 'Food Articles' from Primary Articles group and 'Food Product' from Manufactured Products group have increased from 159.6 in August 2021 to 159.8 in September 2021. The rate of inflation based on WPI Food Index decreased from 3.43% in August 2021 to 1.14% in September 2021. Meanwhile, for the month of July 2021, the final Wholesale Price Index and inflation rate for 'All Commodities' stood at 135.0 and 11.57 % respectively.
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