As per the official data, India’s wholesale inflation quickened to a five-month high of 12.54 per cent in October from a year ago. This comes in the backdrop of higher energy and power costs.
This rise in the wholesale price index (WPI) also follows a rise in retail prices. WPI measures what producers charge retailers basically.
Last week also, the consumer price index for October came in at 4.48 per cent as compared to a 4.35 per cent rise in September.
Today’s fresh data shows core wholesale inflation, which excludes volatile categories of food and energy. It is also an indicator of how entrenched prices are, touching an all-time high of 11.9 per cent in October.
Moreover, a global supply squeeze also weighed on the prices in several key economies. As the US consumer inflation hits a three-decade high in October. This is what had prompted the analysts to expect more when it comes to recovery phase.
Besides, there have been supply and shipping constraints amid the rising demand for goods and services as well as higher wages that weigh heavily on the global economy.
These developments have been a big drag on the Indian economy as well. As India imports key raw materials and components to meet internal demand.
Moreover, a shortage of semiconductors or the chip has also crippled the production of a range of goods like cars, appliances, and mobile phones among others.
And according to the WPI data, fuel and power inflation surged 37.2 per cent in October against a 24.8 per cent rise in September.
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