The WPI, Wholesale price-based inflation has raise to 1.32 percent in the month of September due to increase in the cost of food articles. The government data showed the annual rate of inflation, based on the monthly WPI, is 1.32 percent (provisional) for the month of September, 2020 in comparison with September, 2019 is 0.33 percent whereas that of August is 0.16%.
The WPI was a negative value from April to July, the four consecutive months. The value is -1.57% in April, -3.37% in May, - 1.81% in June and -0.58% in July. The ministry of Commerce and industry shows the inflation for the month of September is 8.17% where as for the month of August is 3.84%. The impact is mainly seen due to the decrease in prices of Cereals with negative print of 3.91% and the pulses price went up by 12.53%. Vegetables inflation is at a high level of 36.54% in September and Potato price is 107.63% compared to September 2019. The onions has deflation rate is 31.64%. The government added the inflation for the manufactured products category raise to 1.61% from 1.27% in August.
The industry expert says, “This is for two reasons. One is that it limits any more scope for intervention from the RBI in terms of reducing the repo rate any further. It also put a dampener on consumption because the tax-paying population is already under stretch due to job losses and the economic contraction”.
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