Softening food prices help inflation cool to 2.6 per cent in September
Data released earlier showed retail inflation at 3.28 per cent in September, unchanged from August, even as vegetable and cereal prices softened.
New Delhi: Wholesale inflation in the country fell to 2.60 per cent in September as food prices softened.
Inflation was at four-month high of 3.24 percent in the previous month.
Inflation in food articles tapered to 2.04 per cent in September, as against 5.75 per cent in August on an yearly basis.
Inflation in vegetable prices cooled to 15.48 per cent in September, as against a high of 44.91 per cent in the previous month. Onion prices, however, continued to rule high with 79.78 per cent increase in September.
In egg, meat and fish segment the rate of price rise was 5.47 per cent.
Inflation in manufactured products witnessed a slight increase at 2.72 per cent, against 2.45 per cent in August. In fuel and power segment, inflation cooled to 9.01 per cent, against 9.99 per cent in August. “WPI inflation corrected sharply in September , led by food articles and fuel and power, even as higher metal prices drove up core inflation to a 35 month high. The correction in vegetable prices was the chief driver of the decline in primary food inflation to 2 per cent from 5.8 per cent,” said Aditi Nayar, principal economist, at Icra.
She said a favourable base effect aided the moderation in inflation for fuel and power, despite the recent rise in prices of petrol, diesel, ATF and other fuels.
Data released earlier showed retail inflation at 3.28 per cent in September, unchanged from August, even as vegetable and cereal prices softened.