The rate of inflation, based on the monthly Wholesale Price Index (WPI), stood at 1.48 per cent for October 2020, compared to 0% during the corresponding month previous year. On a month-on-month basis too, WPI inflation rose for the third straight month. This is also the highest level of Wholesale price index-based (WPI) inflation since February when it was 2.26 per cent.
WPI inflation stood at 1.32 per cent in September as compared to 0.33 per cent during the corresponding month of the previous year. It had climbed 0.16 per cent in August as manufactured products turned costlier after the Centre opened up most of the economic business activities.
Before that, the wholesale price index-based (WPI) inflation had remained negative for four months -- April (-) 1.57 per cent, May (-) 3.37 per cent, June (-) 1.81 per cent and July (-) 0.25 per cent -- as coronavirus induced lockdown hit economic activity. The WPI inflation was 0.42 per cent in March.
"The rate of inflation, based on monthly WPI, stood at 1.48% (provisional) for October 2020 (over October 2019), as compared to 0.00 % during the corresponding month of the previous year," the commerce and industry ministry said in a statement on Monday.
The index for primary articles increased by 1.40% in October from 150.3 in September. Prices of Non-food Articles (2.37%), Food Articles (1.37%) and Minerals (0.66%) increased in October 2020 compared to September 2020. Prices of crude petroleum & natural gas remain unchanged.
The index for fuel and power increased by (0.11%) to 91.1 in October from 91.0 for September. Prices of electricity increased 4.26% yoy in October; prices of mineral oils dipped 1.93%; and coal prices remain unchanged. The manufacturing product index increased by 0.42 per cent in October from 119.8 per cent in September.
In line with market expectations, the Reserve Bank of India's newly-formed Monetary Policy Committee (MPC) had decided to keep the key lending repo rate unchanged at 4 per cent in October.
Retail inflation, based on Consumer Price Index (CPI), also continued to rise for the ninth month in a row in October, reaching 7.61 per cent on the back of rising food prices. This is the highest level of retail inflation since May 2014 when inflation level stood at 8.33 per cent.