retail inflation
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Expansion
India’s wholesale inflation increased to 2.36 percent on an annual basis in October. In September it was 1.84 percent. This increase was due to increase in prices of food items. Government figures related to this were released on Thursday. In a survey conducted by Reuters, wholesale inflation, measured using the wholesale price index, was expected to be 2.2 percent.
Earlier, India’s retail inflation unexpectedly rose to a 14-month high of 6.2% in October from 5.5% in September. Due to increasing inflation, signs of recession are beginning to appear in the economy. Due to this, there may be a delay in the Reserve Bank of India (RBI) taking the decision to relax the monetary policy.
Official data released on Tuesday showed that the rise in prices of vegetables, fruits and edible oils was the main reason for the surge. Retail inflation in October crossed the outer limits of the central bank’s inflation target for the first time since August 2023. WPI measures price growth of wholesale goods. In India, the wholesale price index is divided into three groups, these are primary commodities (22.6 percent of total weight), fuel and electricity (13.2 percent), manufactured goods (64.2 percent).