Despite high prices of onion and pulses, Wholesale Price Index (WPI) inflation remained in the negative territory at (-) 4.54 per cent in September and deflationary trend continued for eleventh straight month. But, adding the woes to the common man, prices of pulses and onion became dearer and continued to remain on an upward movement in the consumer market.
Inflation in food articles inched up to 0.69 per cent in September, from (-) 1.13 per cent in August. Onion and pulses turned costlier, with inflation at 113.70 per cent and 38.56 per cent respectively during September, according to the Government data released on Tuesday.
The WPI-based inflation came in at (-) 4.95 per cent in August. It has been in the negative zone since November. In September last year, inflation was 2.38 per cent.
Inflation in pulses remained over 36 per cent for four months in a row. However, India Ratings & Research Chief Economist Devendra Kumar Pant said, “Decline in deflation is on expected lines. With favourable base effect waning, wholesale inflation is expected to increase. The cause of worry now is pulses.”
As per the official data, the rate of price rise in vegetables was at (-) 9.45 per cent as against (-) 21.21 per cent in August. Inflation rate in fuel and power segment was (-) 17.71 per cent while that of manufactured products was (-) 1.73 per cent in September.
India Inc said the various steps taken by the Government to tackle inflation seem to be yielding results. “The central and state Governments need to take proactive steps to contain any further rise in prices of essential commodities like pulses and onions,” Assocham President Rana Kapoor said.
The inflation data for July has been revised to (-) 4.0 per cent compared with provisional estimates of (-) 4.05 per cent. Besides pulses and onion, the food items which became dearer in September were eggs, meat and fish (2.02 per cent), milk (2.16 per cent) and wheat (3.34 per cent). However, potato inflation was low at (-) 57.34 per cent.