Easing burden:Inflation in food category eased to 5.75 per cent.— FILE PHOTO
Wholesale price inflation eased marginally in September to 3.6 per cent from 3.7 per cent in August due to a cooling off of food prices, data released by the Ministry of Commerce and Industry showed.
Inflation in the food category eased to 5.75 per cent in September from 8.23 per cent in August.
The slowdown in the growth of the WPI comes at a time when India’s retail inflation also eased sharply. Growth in the Consumer Price Index stood at 4.3 per cent in September, the slowest in more than a year, down from 5.05 per cent in August. This shows that the Reserve Bank of India was correct in cutting rates in its latest policy review, according to experts.
“Food prices have reduced during the month led by an easing of prices in the important category of pulses and vegetables,” Rishi Shah, Economist at Deloitte India said. “The effect of lower prices at the wholesale level was also seen at the retail level with the trends broadly in line. As such, inflation has declined due to the sufficient rains and some supply side management by the authorities.”The slowdown in the food category had a significant impact on primary articles segment, inflation in which was at 4.8 per cent in September,” he said.