India’s WPI Inflation Rises To 12.54% In October
New Delhi: The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT) has released the Index numbers of wholesale price in India (Base Year: 2011-12) for the month of October, 2021 (Provisional) and for the month of August, 2021 (Final).
Provisional figures of Wholesale Price Index (WPI) are released on 14th of every month (or next working day) with a time lag of two weeks of the reference month and compiled with data received from institutional sources and selected manufacturing units across the country.
After 10 weeks, the index is finalized and final figures are released and then frozen thereafter.
The annual rate of inflation is 12.54% (Provisional) for the month of October, 2021 (over October, 2020) as compared to 1.31% in October, 2020. The high rate of inflation in October 2021 is primarily due to rise in prices of mineral oils, basic metals, food products, crude petroleum & natural gas, chemicals and chemical products etc. as compared the corresponding month of the previous year.
Month over Month Change in Major Groups of WPI:
Primary Articles (weight 22.62%): – The index for this major group increased by (3.10%) to 159.7 (provisional) in October, 2021 from 154.9 (provisional) for the month of September, 2021. Prices of Crude Petroleum & Natural Gas (9.48%) and Food Articles (5.05%) increased in October, 2021 as compared to September, 2021. Prices of Non-food Articles (-4.59%) and Minerals (-4.16%) declined in October, 2021 as compared to September, 2021.
Fuel & Power (weight 13.15%):-The index for this major group increased by (8.72%) to 124.7 (provisional) in October, 2021 from 114.7 (provisional) for the month of September, 2021. Prices of Electricity (18.84%), Mineral Oils (7.74%) and Coal (0.94%) increased in October, 2021 as compared to September, 2021.
Manufactured Products (weight 64.23%): – The index for this major group increased by (0.82%) to 134.9 (provisional) in October, 2021 from 133.8 (provisional) for the month of September, 2021.Out of the 22 NIC two-digit groups for Manufactured Products, 18 groups have witnessed increase in prices; 3 groups have witnessed decrease and for one group the prices remained unchanged in October 2021 as compared to September, 2021. The increase in prices is mainly contributed by manufacture of basic metals; chemicals and chemical products; electrical equipment; rubber and plastics products and textiles. Some of the groups that have witnessed decrease in prices are manufacture of food products; motor vehicles, trailers and semi-trailers and printing and reproduction of recorded mediain October 2021 as compared to September, 2021.While the Manufacture of computer, electronic and optical products remain unchanged in October, 2021 as compared to September, 2021.
WPI food index (weight 24.38%): The Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group have increased from 159.8 in September, 2021 to 164.8 in October, 2021. The rate of inflation based on WPI Food Index increased from 1.14% in September, 2021 to 3.06% in October, 2021.
Final index for the month of August, 2021 (Base Year: 2011-12=100): For the month of August, 2021 the final Wholesale Price Index and inflation rate for ‘All Commodities’ (Base: 2011-12=100) stood at 136.2 and 11.64% respectively. The details of All India Wholesale Price Indices and Rates of Inflation for different commodity groups for October, 2021 are at Annex I. The Annual rate of Inflation (Y- o-Y) based on WPI for different commodity groups in the last six months is at Annex II. The WPI Index for different commodity groups in the last six months is at Annex III.
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