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WPI inflation rises to 5.13%
Why in the news ?
- Wholesale Price Index (WPI)-based inflation jumped to a two-month high of 5.13 per cent in September.
- The rise in inflation is primarily due to hardening of food prices and rise in cost of petrol and diesel.
More in the news
- The WPI-based inflation stood at 4.53 per cent in August and 3.14 per cent in September last year.
- Food articles witnessed hardening of prices with deflation at 0.21 per cent September as against 4.04 per cent in August.
- Deflation in vegetables was 3.83 per cent in September, compared to 20.18 per cent in the previous month, indicating relative rise in prices.
- Inflation in ‘fuel and power’ basket in September was 16.65 per cent.
- Individually, in petrol and diesel it was 17.21 per cent and 22.18 per cent, respectively, and for LPG it was 33.51 per cent.
- Data released last week showed retail inflation rose to 3.77 per cent in September from 3.69 per cent in the previous month.
- The RBI mainly takes into account retail inflation data while formulating monetary policy.
Concept
- Inflation is defined as a sustained increase in the general level of prices for goods and services in a county.
- WPI index reflects average price changes of goods that are bought and sold in the wholesale market.
- Wholesale price indexes report monthly to show the average price changes of goods sold in bulk, and they are a group of the indicators that follow growth in the economy.
- WPI includes all the manufactured products and CPI includes food and services part.
Source
Indian Express