Wholesale Inflation: Wholesale price inflation has once again increased due to the rising prices of food items, especially vegetables. It rose to 1.84 percent in September. Whereas in August, the Wholesale Price Index (WPI) based inflation was 1.31 percent. In September last year, it had decreased by 0.07 percent. The main reason for the increase in food inflation is the rise in food inflation to 11.53 percent in September.

Whose prices increased by how much

According to data released on Monday, food inflation rose to 11.53 percent in September as against 3.11 percent in August. This was due to vegetable inflation which rose 48.73 percent in September. It fell by 10.01 percent in August. Inflation in potatoes and onions remained high at 78.13 percent and 78.82 percent respectively in September. The fuel and power category witnessed deflation of 4.05 percent in September as against 0.67 percent in August.

The Ministry of Commerce and Industry said in a statement that the positive rate of inflation in September, 2024 is mainly due to the increase in prices of food articles, food products, other manufacturing, motor vehicles, manufacture of trailers and semi-trailers, manufacture of machinery and equipment, etc.

Worries for RBI

The Reserve Bank of India (RBI) mainly takes retail inflation into account while formulating monetary policy. In its monetary policy review this month, the RBI kept the main interest rate or repo rate unchanged at 6.5 percent. Since the wholesale inflation rate has increased, its effect will also be seen on the retail inflation rate. And if it increases, then the RBI may wait longer to cut interest rates.