Business · Economy · 7 hrs ago

India’s wholesale inflation reaches a series high of 11.4% in September

India’s wholesale inflation reaches a series high of 11.4% in September

India’s wholesale inflation climbed to 11.4% in September, up from 9.9% in August and the highest in the current index series.

The rise reflected higher prices for fuel and power, food, and manufactured products.

Fuel and power inflation reached 25.9%, while food inflation rose to 8.7% and manufactured goods inflation to 9.8%.

The increase comes amid a West Asia crisis and a blockade of the Strait of Hormuz, which have pushed up oil, fertiliser and food prices.

Retail inflation also rose to 5.54%, adding to concern that higher costs for businesses may feed into prices paid by consumers.

Analysts expect wholesale inflation to rise further in October, with some forecasts above 12%; they say easing tensions in West Asia could reduce price pressure.

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What people are saying

Devendra PantChief economist at India Ratings and Research
Prolonged West Asia crisis continues to drive fuel and power inflation higher and is likely to remain elevated until the resolution of the crisis.
via Economic Times
Rajani SinhaChief economist at CareEdge Ratings
Elevated commodity prices are concerning as they could sustain wholesale price pressures and indirectly feed into the CPI (consumer price index) basket.
via Economic Times