WPI Based Overall Inflation moved up to 9.73% in October from 9.72% in September

As per inflation data released on 14 November 2011, headline inflation moved up to 9.73 per cent in October 2011 despite the various supply-side and monetary measures taken by the government and the RBI. For the 11th consecutive month the headline inflation stood above the 9% mark.

WPI (wholesale price index) based overall inflation moved up in October from 9.72 per cent in September to 9.73 per cent owing to the hike in prices of fuel (petrol), higher prices of manufactured goods and food items such as fruits, milk and vegetables.

In October 2010, headline inflation was lower at 9.08 per cent. The increase in headline inflation was attributed the near double-digit food inflation. Food items became 11.06% more expensive year-on-year during October 2011. Vegetables grew 21.76% costlier on an annual basis, while fruit prices were up by 11.96% and milk by 11.12% during the month. Eggs, meat and fish witnessed 12.59% inflation during October 2011. Food inflation was at 9.23% in September.

Inflation in the fuel and power segment stood at 14.79% on an annual basis in October, as against 14.09% in September 2011.

Non-food primary articles, which include fibres, oil seeds and minerals, grew dearer by 7.71% in October, as compared to a 14.82% rise in September. Prices of manufactured products, which have a weight of around 65% in the WPI basket, went up by 7.66% year-on-year in October.

Inflation in overall primary articles stood at 11.40% in October compared to 11.84% in September.