Inflation dropped marginally to 7.45 per cent in October as price increases in some food items such as rice and pulses eased during the period.
Inflation, as a measure of wholesale price index (WPI), stood at 7.83 per cent in September and at 9.73 per cent in October last year. Interestingly, the Government revised the WPI-based inflation upwards for August to 8.01 per cent from provisional 7.55 per cent reported earlier.
The inflation rate for food articles declined to 6.62 per cent in October as against 7.86 per cent in September. The inflation stood at 10.63 per cent in May for food articles, which have a 14.3 per cent share in the WPI basket.
The price rise in food items such as rice, pulses, vegetables, potato, fruits and oilseeds was slower during October over the previous month. However, the inflation rate for wheat, cereals, onion, milk, egg, meat and fish was higher during the period.
The inflation rate for fuel and power decreased marginally to 11.71 per cent in October from 11.88 per cent in September on drop in aviation turbine fuel, furnace oil, bitumen and naphtha prices. However, the price rise of liquefied petroleum gas and high speed diesel saw a marginal increase during the period. The moderation in wholesale prices comes amidst disappointing set of numbers on industrial output and ballooning trade deficit on account of shrinking exports. The retail inflation rose to 9.75 per cent for October.
The Reserve Bank of India expects inflation to be at 7.5 per cent by March. Inflation for the non-food articles rose to 10.82 per cent from 10 per cent in September, while that for the minerals group increased to 13.75 per cent from 12.38 per cent.
In the manufactured products category, the price hike for cotton textiles and man-made textiles increased, while that of sugar, food products, edible oils and beverages declined marginally. Products such as wood and wood products, paper and paper products, rubber and plastic products, chemicals and basic metals and alloys saw a slower rise in prices.