October Sees Spike in India's Wholesale Inflation, Food Prices Surge

India's wholesale inflation grew sharply in October 2024, reaching 2.36% due to rising food prices. The food index inflation rate climbed to 11.59% from 9.47% in September. Policymakers monitor these trends closely, with a focus on the Kharif harvest season's impact and the potential effects on retail inflation.

In October 2024, India's wholesale inflation registered a notable increase, as reflected in the 2.36% rise of the Wholesale Price Index (WPI) over the same month last year. This surge marks a persistent presence in positive territory for over a year, presenting a mixed economic narrative.

The food index, constituting a 24.38% weightage in the WPI, saw inflation climbing to 11.59% from September's 9.47%. Government data attributes this uptick to climbing prices in essential food articles and manufacturing. The monthly inflation data, released on the 14th by the government, offers insights into economic conditions.

Previously, the WPI had been in double digits for 18 months, but recent trends highlight a concern for policymakers, especially considering retail inflation's breach of the Reserve Bank of India's 6% cap. Focus shifts to the Kharif harvest's impact, as well as rabi sowing progress in managing these inflationary pressures.

(With inputs from agencies.)