New Delhi, 14 October (H.S.): In a fresh setback on the inflation front, India’s wholesale inflation rate rose to 11.39 per cent in September, up from 9.92 per cent in August, driven by a sharp increase in the prices of food items, manufactured goods, fuel and electricity. According to the latest data, the rate reached a five-month high, adding to concerns over rising price pressures in the economy.

The Ministry of Commerce and Industry released the wholesale price index (WPI)-based inflation figures on Wednesday. The data showed that food inflation increased to 8.66 per cent in September from 7.05 per cent in August. Inflation in manufactured products also climbed to 9.76 per cent, its highest level in the current data series, compared with 8.37 per cent in the previous month. Meanwhile, inflation in the fuel and power category rose to 25.85 per cent from 22.93 per cent in August.

According to the ministry, the rise in wholesale inflation was primarily driven by higher prices of mineral oils, including petroleum products, food items, crude petroleum and natural gas, coal and lignite, basic metals, chemicals and chemical products, textiles, rubber and plastic products, and electrical equipment.

The latest wholesale inflation figures come amid mounting pressure on prices across the economy. Higher input costs can increase the financial burden on businesses and, in turn, contribute to rising prices for consumers.

The Reserve Bank of India’s (RBI) Monetary Policy Committee had raised the policy repo rate by 0.25 percentage points to 5.50 per cent last week. The move came as the central bank continued to address inflationary pressures and assess their implications for economic stability.

Meanwhile, retail inflation, measured by the Consumer Price Index (CPI), also rose sharply in September, reaching 5.54 per cent, its highest level in 23 months, according to figures released earlier this week. The increase was largely attributed to a steep rise in food prices.

The simultaneous rise in wholesale and retail inflation highlights the growing pressure on prices across different segments of the economy. The latest figures are likely to keep policymakers focused on inflation trends, commodity prices and their potential impact on household budgets and business costs.

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Hindusthan Samachar / Jun Sarkar