Rising Wholesale Inflation: A Vegetable-Driven Surge

Wholesale price inflation in October surged to a four-month high of 2.36%, driven by soaring food and manufactured goods prices. Vegetable inflation reached an alarming 63.04%, while fuel and power saw deflation. Experts predict a potential easing in November due to favorable agricultural output.

Inflation in the wholesale price index (WPI) spiked to 2.36% in October, its highest in four months, according to new government data. The rise was chiefly driven by escalating prices of food commodities and manufactured goods.

The surge in food prices was notably pronounced, with vegetable inflation soaring to an astounding 63.04%, compared to 48.73% in September. Fuel and power, in contrast, experienced deflation, marking a decrease of 5.79% in October.

Experts like Barclays Regional Economist Shreya Sodhani point to perishable food prices as a primary driver of inflation, affecting both retail and wholesale indices. Meanwhile, ICRA's Rahul Agrawal forecasts potential relief in November, projecting WPI inflation could ease to around 2% due to strong agricultural output forecasts.

(With inputs from agencies.)