Wholesale inflation is projected to cross 10% in September following an increase in food item prices. In August, the wholesale inflation stood at 9.92%.
Wholesale inflation figures for September will be officially released on October 14. According to experts, inflation remained above 10% in September due to an increase in the prices of food items.
Earlier in August, wholesale inflation stood at 9.92%. An inflation rate of 10% means that goods priced at ₹100 in the wholesale market last year now cost around ₹110.
Prolonged high wholesale inflation adversely affects most productive sectors across the broader economy.
When wholesale prices remain elevated for an extended period, producers eventually pass the increased burden onto regular consumers.
The government can primarily regulate the Wholesale Price Index (WPI) through taxation policies.
Retail inflation also advanced to 5.54% in September, up from 4.82% recorded in the month of August.
Prices of vegetables such as potatoes, onions, and tomatoes, along with other edible items, increased significantly.
Escalating tensions in the Middle East made crude oil costlier, leading to an increase in inflation for the 11th consecutive month.
India measures price fluctuations through two distinct types of inflation indicators.
Retail inflation, known as the Consumer Price Index (CPI), represents the actual prices paid directly by individual retail consumers.
Wholesale Price Index (WPI) measures the prices charged from one business merchant to another inside the wholesale trading market.
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