Wholesale Price Index records 1.84% inflation in September 2024 amid rising food prices
The Wholesale Price Index (WPI) data for September 2024 reveals an annual inflation rate of 1.84%, based on the 2011-12 base year. According to the Ministry of Commerce and Industry, this positive rate is driven by higher prices in food articles, food products, and key manufacturing sectors such as motor vehicles, trailers, machinery, and equipment.
The overall WPI reached 154.6 in September 2024, reflecting a modest monthly increase of 0.06% from the 154.5 recorded in August. On a yearly basis, inflation rose from 1.31% in August to 1.84% in September.
The Primary Articles category, which holds a weight of 22.62%, saw its index rise by 0.41%, reaching 195.7 in September compared to 194.9 in August. On an annual basis, inflation for primary articles climbed to 6.59%, up from 2.42% in August. Within this group, minerals increased by 1.83%, non-food articles by 1.31%, and food articles by 0.86%. Meanwhile, crude petroleum and natural gas prices saw a notable decline of 5.74% compared to the previous month.
The Fuel and Power category, accounting for 13.15% of the index, recorded a decline of 0.81% in September, bringing the index down to 146.9 from 148.1 in August. The deflationary trend in this category deepened, with the annual inflation rate falling to -4.05%, compared to -0.67% in the prior month. A 1.72% decrease in mineral oil prices contributed to this decline, while electricity prices rose by 1.34%, and coal prices remained stable.
In the Manufactured Products category, which holds the largest weight of 64.23%, the index edged up by 0.14% to 141.8 in September. The annual inflation rate for this category eased to 1.00%. Out of the 22 sub-categories, 10 recorded price increases, including food products, wearing apparel, and electronic products. Meanwhile, prices dropped in basic metals, textiles, chemicals, and fabricated metal products.
A significant factor contributing to the overall inflation rate was the sharp rise in the WPI Food Index, which encompasses both ‘food articles’ from the primary category and ‘food products’ from the manufactured category. The Food Index climbed from 193.2 in August to 195.3 in September.
The data also highlighted trends over the past six months. April and July saw wholesale prices increase, while August recorded a contraction before showing a slight rebound in September. The Primary Articles category posted monthly growth in April (2.13%) and July (2.86%) but decreased in August (-1.47%). The Fuel and Power segment consistently showed declines, except for a small rise in July (0.88%). In Manufactured Products, price variations remained relatively minor without major fluctuations during this period.
The WPI for September 2024 was compiled with an 86.3% weighted response rate, while the final figure for July 2024 was based on a 96.0% response rate. As per the revision policy, provisional figures undergo updates after 10 weeks. The next WPI release, covering October 2024, is set for November 14, 2024. (ANI)
