India Inc today said the spike in inflation, which rose to a six month high of 3.59 per cent in October, will ease in the coming months.
The Wholesale Price Index (WPI) grew to 3.59 per cent (provisional) for the month of October, 2017 as compared to 2.60 per cent (provisional) for the previous month, thus registering a growth of one per cent.
Inflation in food articles more than doubled to 4.30 per cent in October from 2 per cent in September.
Wholesale prices had accelerated in August to 3.24 per cent from July's rise of 1.88 per cent and an increase of 0.90 per cent was reported for June.
For the "manufactured rubber and plastics products" group, the inflation rate rose 0.7 per cent due to higher prices of V-belts, plastic box / container, tooth brush, 2/3 wheeler tyre and rubberised dipped fabric as also rubber tube and plastic tape and rubber moulded goods, polyester film (non-metalized), thermocol, PVC fittings and other accessories, plastic bag, polypropylene film, plastic furniture, plastic tank and rubber components and parts. Meanwhile, inflation of non-food items (all commodities excluding food items) moved up to 3.7% in October 2017 from 2.9% in September 2017. In case of onions, inflation shot up by to 127.04 per cent, while for the eggs, meat and fish segment the rate of price rise was 5.76 per cent.
Pulses continued to witness deflation at 31.05 percent.
The sub-category of manufactured food products registered a rise of 1.26 per cent.
Inflation rate for the "mineral oils" group rose 3.9 per cent due to higher prices of LPG, naphtha, petroleum coke, ATF, furnace oil, kerosene, bitumen, HSD and petrol.
The index for "Manufacture of Textiles" group declined by 0.2 per cent to 113.2 (provisional) from 113.4 (provisional) for the previous month due to lower price of cotton yarn (2 per cent) and woollen yarn (1 per cent).
It was 4.2 percent in October a year ago.
"Both wholesale and retail prices edged up in the month of October". Nearly all commodity prices go up with an increase in price of fuel.
"Ficci would like to reiterate that under the present scenario inflation targeting by the central bank may not be the best approach. The high real interest rates remain a challenge for the industry", he added.
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