14^th October, 2022

According to the government data released on 14^th October 2022, India’s wholesale price-based inflation eased in Setember to 10.70% as against 12.41% in August 2022, while WPI for July month has been revised to 14.07% from 13.93%.

Despite of the easing in WPI data, it continues to remain in the double digits for the 18^th consecutive month, continuing from April 2021.

Inflation in September’22 is mainly contributed by rise in prises of mineral oils, food articles, crude petroleum, natural gas, chemical, basic metals, electricity, textiles etc.

Inflation of food articles in September eased to 11.03%,whereas vegetable inflation rose to 39.66%. In Fuel & Power and Manufactured products inflation came in at 32.61% and 6.34% respectively.

The RBI bases its monetary policy mostly on retail inflation. According to information released earlier this week, retail inflation reached a 5-month high of 7.41 percent in September and continued to be over the Reserve Bank’s upper tolerance threshold of 6 percent for the ninth consecutive month.

The RBI increased the benchmark interest rate four times this year to 5.90%, the highest level since April 2019, in an effort to control inflation that has remained persistently high.