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Opinion

IPM inflation in the 8-month high at 1.48% in October

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Inflation based on wholesale prices rose to an eight-month high of 1.48 percent in October as manufactured goods became more expensive.

IPM inflation was 1.32 percent in September and zero percent in October last year.

This is the highest level of inflation based on the wholesale price index (WPI) since February, when it was 2.26%.

While the prices of food items softened in October, manufactured items saw prices tighten, according to data released by the Ministry of Commerce and Industry on Monday.

Food inflation in October stood at 6.37%, compared to 8.17% in the previous month.

The rate of increase in the prices of vegetables and potatoes remained high at 25.23 percent and 107.70 percent, respectively, during the month.

Inflation of non-food items and minerals was higher, 2.85% and 9.11%, respectively.

In the manufactured goods category, inflation stood at 2.12 percent in October, compared with 1.61 percent in September.

The prices of the fuel and energy basket softened to (-) 10.95 percent in October.

Retail inflation, based on the consumer price index, was 7.61 percent in October, data released last week showed.

The Reserve Bank of India (RBI) in a report on the state of the economy last week also pointed to the relentless pressure of inflation as a downside risk in the face of the prospects for economic recovery.

“The main one is the incessant pressure of inflation, with no signs of abating despite the supply management measures … There is a serious risk of generalization of price pressures, de-anchoring of inflation expectations that feed a loss credibility in policy interventions and the eventual corrosion of nascent growth impulses that are making their appearance, ”the RBI said.

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