India’s wholesale price inflation up at 1.84% in September

The annual rate of inflation based on the Wholesale Price Index (WPI) stood at 1.84 per cent in September 2024, up from 1.31 per cent in August.

The WPI-based inflation rate stood at 0.26 per cent in September 2023. 

The spike in WPI inflation in September 2024 has primarily been attributed to an increase in food prices, a key component of the Wholesale Price Index. The index of food prices that include manufactured food products and food articles, stood at 9.47 per cent in September against 3.26 per cent in August, as per preliminary data.

Vegetable prices increased by 48.7 per cent in September 20204, against a 10 per cent drop in August. Prices of cereals increased by 8.1 per cent year-on-year, but at a lower rate compared to an 8.4 per cent increase in August.

Prices of other manufactured products, such as motor vehicles, trailers and semi-trailers, machinery and equipment, etc also increased in September 2024. 

Prices of fuel and power declined in September with prices down more than 4 per cent compared to levels around 0.67 per cent in the previous month.

Inflation rate for the `primary articles’ group which has a weight of 22.62 per cent in the WPI, increased by 0.41 per cent in September 2024 as prices of minerals (1.83 per cent), non-food articles (1.31 per cent) and food articles (0.86 per cent) increased.

Inflation rate for the `fuel and power’ group (weight of 13.15 per cent in WPI) declined by 0.81 per cent while the price of electricity increased and price of mineral oils declined in September 2024, compared to the previous month. Cola prices remained unchanged at August 2024 levels.

Inflation rate for the `manufactured products’ group (weight of 64.23 per cent in WPI) increased by 0.14 per cent in September 2024. 

Out of the 22 manufactured product groups, 10 groups saw increase in prices while 9 groups witnessed a decline in prices and 3 groups recorded no change in prices. 

Food price inflation rate, based on the WPI index for food (weight of 24.38 per cent in WPI), consisting of 'food articles' from primary articles group and 'food product' from manufactured products group, increased to 9.47 per cent in September 2024 from 3.26 per cent in August.

The final rate of WPI inflation, based on the revised inflation rate for all commodities, now stands revised to 2.10 per cent in July.