WPI-based inflation drops to six-month low of 10.66% in September

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Wholesale price inflation for September 2021 declined due to lower fuel and food prices

Inflation based on the wholesale price index fell in September 2021 to 10.66% from 11.39% in August 2021, the prices of primary items, fuel and electricity as well as food having fallen during the period.

Inflation for wholesalers was at a six-month low in September, but meanwhile remained at double-digit levels for the sixth consecutive month, according to monthly data released by the Commerce Ministry.

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In September 2021, the monthly decline in WPI inflation was driven by the decline in the Primary Items Group Index, which was 154.9 in September 2021 compared to 155.8 in August 2021.

Within this group, prices for crude oil and natural gas, minerals and food items declined in September 2021 compared to August 2021. Overall, WPI inflation for primary items fell to 4, 1% in September 2021, compared to 6.2% in August 2021.

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Likewise, the fuel and electricity index fell to 114.7 in September 2021 against 116 in August 2021. Under this index, the prices of mineral oils fell while those of coal and electricity fell. remained unchanged.

WPI headline inflation for fuel and electricity fell to 24.8% in September 2021, from 26% in August 2021

Additionally, the WPI-based food inflation index fell to 1.14% in September 2021, from 3.4% in August 2021.

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WPI inflation for manufactures, however, increased slightly in September 2021 to 11.41% from 11.39% in August 2021.

However, at the same time, compared to the wholesale inflation rate of 1.32% in September 2020, the 10.66% rate for September 2021 is an increase of almost 10 times and was mainly due to the increase prices of mineral oils, basic meals, non-food items, food products, crude oil as well as chemicals.

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