New Delhi: India’s wholesale inflation fell below double-digit to 8.39 per cent in October 2022, the lowest print in 19 months.
“The annual rate of inflation based on all India Wholesale Price Index (WPI) number is 8.39 per cent (provisional) for October 2022 (over October 2021) against 10.70 per cent recorded in September 2022,” said a release from the Commerce and Industry Ministry on Monday.
The moderation in wholesale price index (WPI)-based inflation was driven by all three broad segments namely primary articles, fuel and power and manufactured products.
“Decline in the rate of inflation in October 2022 is primarily contributed by fall in the price of mineral oils, basic metals, fabricated metal products, except machinery and equipment; textiles; other non-metallic mineral products; minerals etc,” the statement said.
Commenting on the October inflation number, India Ratings and Research (Ind-Ra) Principal Economist Sunil Kumar Sinha said that due to the onset of winter, the inflationary pressure on fruits and vegetables are expected to ease further in the coming months provided there are no weather shocks.
“The worrying trend in case of food inflation continues to be the inflation in cereals which remained in double digit for the third consecutive month in October 2022. Inflation in both important cereals namely wheat and rice increased marginally in October 2022 as compared to a month ago,” he said.
“No doubt the impact of base effect is visible both in the headline and core wholesale inflation in October 2022, Ind-Ra expects wholesale inflation to soften further in coming months. However, the reflection of softening wholesale inflation in retail inflation will happen with some lag,” he further said.