Representational image of an aerial view of a footpath market in Bengaluru. Food price inflation decelerated to 8.9% in November 2024 from a 25-month high of 11.6% in October
| Photo Credit: Sudharaka Jain

India’s wholesale prices rose at a three-month low pace of 1.89% in November, easing from October’s 2.4% uptick, with food price inflation decelerating to 8.9% from a 25-month high of 11.6% in the previous month, even as manufactured products’ inflation accelerated to 2%.

Inflation in primary articles eased to 5.5% from 8.1% in October, while fuel and power remained in deflation zone, with prices falling 5.83% year-on-year.

On a sequential basis, the Wholesale Price Index (WPI) was down just 0.06%, led by a 1.2% fall in primary articles and a 0.45% decline in the Food Index. By contrast, fuel and power prices were up 1.2%, breaking a two-month streak of sequential declines, while manufactured products were 0.4% pricier than October.

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Among manufactured products, some of the important groups that showed month-over-month increase in prices are food products, furniture, non-metallic mineral products, pharmaceuticals, medicinal chemical and botanical products and electrical equipment, the Commerce and Industry Ministry said.

Vegetable inflation that had soared over 63% in October, more than halved to 28.6%, but potato prices rose an alarming 82.8%, up from a little over 78% recorded in the previous two months. Onion inflation, which had halved from 78.8% in September to 39.25% in October, fell dramatically to a mere 2.85% in November.

The Ministry attributed November’s wholesale price inflation pace to the increase in prices of food articles, food products, other manufacturing, textiles, machinery and equipment.

Food products’ inflation hardened to 9.5% in November from 7.8% in the previous month, while edible oils and fats’ prices surged 28% from 20.2% in October. The price rise in fruits and pulses decelerated to 8.4% and 6%, respectively, but some other food items continued to see persistently higher inflation, including wheat (8.4%) and paddy (7.6%).

Potato and Onion prices were up 78.1% and 78.8%, respectively, in September, accelerating from the previous month, while fruits and pulses inflation eased marginally from the previous month at 12.2% and 13%, respectively. File
| Photo Credit: The Hindu

Inflation in India’s wholesale prices increased to 1.84% in September from 1.31% in August, with food prices surging 9.5% from a 10-month low of 3.3% in August as vegetables became nearly 49% costlier than last year, Government data released on Monday (October 14, 2024) showed.

The Wholesale Price Index (WPI) slightly increased due to a 4% drop in fuel and power prices from last September and a slight decrease in manufactured product inflation, easing a tad to 1%.

On a month-on-month basis, the WPI increased by 0.06%, with the food index showing the highest gain of 1.1%. Meanwhile, manufactured goods and primary articles’ prices increased by 0.14% and 0.41%, respectively.

Potato and Onion prices were up 78.1% and 78.8%, respectively, in September, accelerating from the previous month, while fruits and pulses inflation eased marginally from the previous month at 12.2% and 13%, respectively.

“The positive rate of inflation in September, 2024 is primarily due to the increase in prices of food articles, food products, other manufacturing, the manufacture of motor vehicles, trailers & semi-trailers, the manufacture of machinery & equipment and so on,” the Commerce and Industry Ministry said.

Cereals and paddy inflation eased fractionally to 8.1%, but wheat prices rose at a faster pace of 7.6% during September. Milk inflation cooled a bit to 3.2%, while eggs, meat and fish prices fell 0.8%, marking the second successive month of year-on-year decline in prices. Fuel and power prices fell 0.8% from August 2024 levels.

Manufactured food products’ recorded an inflation of 5.5% in September, while vegetable and animal oils and fats were up 10.5%, albeit on a benign basis last year when prices had fallen for both.

The retail price of unpeeled garlic has gone up to ₹500 per kg. Bigbasket price is also ₹500 after giving discount from list price ₹720.

Pulses put on display for sale at wholesale grocery market in New Delhi. File photo
| Photo Credit: The Hindu

Inflation in India’s wholesale prices slid to a four-month low of 1.31% in August from 2.04% in July, aided by a slight moderation in the pace of price rise in food items and manufactured goods, and fuel and power costs slipping into a mild deflation of 0.7% from a 1.7% uptick in the preceding month, government data released on Tuesday (September 17, 2024) showed.

Food inflation eased from 3.6% in July to 3.3% in August, but this was again spurred by a year-on-year decline in prices for vegetables and eggs, meat and fish, which dropped 10% and 0.7%, respectively.

Base effects played a key role in this moderation as vegetable prices were up 48.4% last August. Inflation in primary food articles stood at 3.1% from a steep 11.4% a year ago, but several items witnessed a sharp spurt in prices despite last year’s high base.

Cereals inflation remained firm at 8.44%, with paddy prices up 9.1% and wheat inflation accelerating to 7.3% from July’s 7% rate. Pulses inflation was a sharp 18.6, while potato inflation picked up further to 78% in August.

The price rise in onions stayed sharp at 65.75%, although below the 88.8% rise recorded in July. Inflation in fruits picked up to 16.7%, from 15.6% in July, while milk inflation offered some respite at 3.5%, compared with 8.5% a year ago.

The Food Index was down 1.13% from July levels, compared with the six-month high of a 2.7% sequential recorded in July.

Economists expect some of the gains in primary food articles inflation in August to reverse in line with base effects from last September, when they rose 3.8%, kicking in. “This would exert upward pressure to the headline wholesale inflation print for September 2024, which could rise to around 2% in from August’s 1.3% mark,” said Rahul Agrawal, senior economist at ICRA.

Manufactured products’ prices reversed a three-month rising streak with an inflation of 1.22% in August, from 1.6% in July. They were 0.07% lower on a month-on-month basis. 

Fuel and power prices rose 0.14% month-on-month, but were 0.7% below last August levels, which again marked a reversal of gradual upticks over the previous three months. 

Food prices rose 1.14% over April levels. Image used for representative purpose only. 
| Photo Credit: K. Murali Kumar

Inflation in India’s wholesale prices accelerated to a 15-month high of 2.61% in May, more than double April’s pace, with food inflation surging to a 10-month peak of 7.4% driven by steeper prices for vegetables, fruits, pulses and cereals, and a resurgence of price rise in manufactured products after 14 months of decline.

Economists said the rise in wholesale inflation in May signals there is room for a further surge in consumer prices despite retail inflation easing to a 12-month low of 4.75% last month, especially as food and industrial input prices are spiking globally. May was the seventh month in a row that the WPI rose on a year-on-year basis after seven consecutive months of decline, and it is expected to rise over 3% this month.

On a month-on-month basis, the Wholesale Price Index (WPI) was up 0.2% in May, easing from a ten-month high of 0.8% a month earlier, with food prices rising 1.14% over April levels and manufactured products’ prices up 0.64%.

The heatwaves in May helped fire up the inflation rate for vegetables to the highest level in nine months at 32.4%, and a six-month high of 5.8% for fruits. Price rise in cereals sped to 9%, while that for pulses reversed direction to hit a six-month high of 22%.

Within vegetables, tomato prices were up 64.5% in May from 40.6% in April, while inflation in onion and potato dropped slightly to a tad over 58% and 64%, respectively. Bank of Baroda chief economist Madan Sabnavis said these spikes in vegetable prices were partly due to supply shortfalls and the heat wave aggravated the challenge. “This is a major concern as it will keep up the pressure on the inflation till the next crop comes,” he told The Hindu.

India Ratings flagged similar concerns about pulses prices remaining elevated in double-digits as the new crop would be harvested only in October-November. “Elevated food inflation at the wholesale level is worrisome as this would keep retail food prices firm even going forward. Retail food inflation has been above 8% for the past seven months,” said the firm’s senior director and principal economist Sunil Kumar and senior analyst Paras Jasrai in a note.

India Ratings expects retail food inflation to remain over 8%, with wholesale prices expect to rise further to 3.5%, in June. CareEdge Ratings’ chief economist Rajani Sinha also pointed out that industrial metal prices have risen 9.3% since March-end and food prices are increasing globally.

“Positive rate of inflation in May is primarily due to increase in prices of food articles, manufacture of food products, crude petroleum & natural gas, mineral oils, other manufacturing, etc,” the Commerce and Industry Ministry said.

April marks the sixth successive month that the Wholesale Price Index has risen on a year-on-year basis. Representational file image.
| Photo Credit: SUSHIL KUMAR VERMA

Inflation in India’s wholesale prices rose to a 12-month high of 1.26% in April, from 0.53% in March, owing to an uptick in food inflation and a 1.4% year-on-year rise in fuel and power prices after several months of deflation.

The Wholesale Food Index rose 5.5%, compared with 4.65% in March, while the decline in manufactured products’ prices eased to 0.4% in April from 0.8% in the previous month. Inflation in primary articles also moved up from 4.5% in March to 5% last month, indicating a broad-based reversal of wholesale price trends.

Also read | Food inflation scaled 4-month peak of 8.7% in April

April marks the sixth successive month that the Wholesale Price Index (WPI) has risen on a year-on-year basis, after seven months of deflation. On a month-on-month basis, the WPI was up 0.8% with primary articles and food prices rising nearly 2% in April, while manufactured products were up 0.5%.

“Positive rate of inflation in April, 2024 is primarily due to increase in prices of food articles, electricity, crude petroleum & natural gas, manufacture of food products, other manufacturing, etc.”, the Commerce and Industry Ministry said.

Potatoes, onions report sharp inflation

Potatoes and onions reported a sharp surge in inflation, hitting 72% and 59.8%, respectively, from 53% and 57% in March. Paddy inflation also gained momentum, rising over 12%, while price rise in eggs, meat and fish stood at 0.9% compared with a 1.86% decline in prices March. At the retail level, eggs inflation was 7.1% while meat and fish prices had raced past 8% in April.

The rise in wheat and milk prices, however, eased a little to 5.7% and 4.3%, respectively, while fruit prices were down 1.8% from last April.