Potato, Other Vegetable Prices Drive Wholesale Inflation 2.36% Higher In October

Wholesale food prices increased 11.59% during October, compared to 9.47% in September, showed data released by Ministry of Commerce and Industry on Thursday. Rise in food and fuel prices took wholesale inflation, calculated through Wholesale Price Index, to 2.36%.

On sequential basis, WPI inflation, increased 0.97%, with food index again contributing the most with a rise of 3.02%.

Food articles—which are a part of primary articles—saw the highest rise in potato and vegetable wholesale prices, which rose 78.73% and 63.04% on-year. Onion wholesale prices rose 39.25%, while eggs, meat and fish prices cooled off by 0.52%.

WPI Food Index—comprising 'food articles' from primary articles group and 'food product' from manufactured products group—increased from 9.47% in September 2024 to 11.59% in October 2024, the government statement said.

Fuel and power wholesale prices dropped 5.79% on annual basis. Under the category, cooking gas prices rose 2.57%, while petrol and high-speed diesel prices went down by 7.35% and 6.23%, respectively.

Fuel inflation remaining in negative territory has been a positive factor, thus containing the spread of inflation across categories, said Sujan Hajra, chief economist and executive director, Anand Rathi Shares and Stock Brokers.

Manufactured products got costlier by 1.5% during the month under review, compared with a decline of 1.06% in the year-ago period and rise of 1% in the September.

"Inflation in manufacturing has been on rise due to unfavourable base. We expect the manufacturing inflation continuing uptrend, while the better harvest shall ease supply concerns of food items," Hajra said.

Of the 22 manufactured products groups, 14 witnessed an increase in prices, six groups saw a decrease in prices, and two groups witnessed no change in prices.

The Commerce Ministry also revised the rise in WPI figure for August to the final level of 1.25%.