Rising Wholesale Prices: Food Inflation Hits 4-Month High

Inflation at the wholesale level surged to a 4-month high of 2.36% in October, driven by increased food and manufacturing prices. This marks the second consecutive month of rising WPI inflation. This surge might influence RBI's upcoming policy decisions, impacting interest rates in India.

Wholesale price inflation in India surged to reach a 4-month high of 2.36% in October, according to government data released on Thursday. The increase was largely due to the rising costs of food items, including vegetables, and manufactured goods.

In October, inflation in food items jumped to 13.54%, up from 11.53% in September. Vegetables faced a steep rise of 63.04% compared to the previous month. This inflationary trend was mirrored by high rates for potatoes and onions, which showed inflation of 78.73% and 39.25% respectively.

The Ministry of Commerce & Industry attributed the October rise primarily to the increased prices in food articles and various manufacturing sectors. This rise may challenge fiscal policy decisions by the Reserve Bank of India, as the retail inflation rate of 6.21% exceeds its upper tolerance limit, possibly affecting interest rate adjustments in December.

(With inputs from agencies.)