Headline inflation, as measured by the Wholesale Price Index (WPI), stood at 12.14 per cent for the week ended September 13 — unchanged from the week-ago level — because of a decline in the rate of price rise in manufactured products.
However, inflation in the same period a year ago was significantly lower at 3.51 per cent. On an annual basis, manufactured goods inflation declined to 10.61 per cent as compared with 10.78 per cent in previous weeks, while primary articles group increased by 29 basis points to 11.56 per cent.
The list of 30 essential commodities, which the government keeps a close watch, stood at 7.58 per cent for the week ending September 13, mainly due to a fall in prices of cereals, pulses, sugar and edible oils. It was 7.72 per cent a week earlier.
“Inflation is likely to come down to double-digit mark by January next year as the base effect will go,” said Pronab Sen, India’s chief statistician.
“On a month-on-month basis, inflation rate has come down”, he added.
Sen also supported a move towards monthly reporting of wholesale price index numbers, as it would make the data more reliable and accurate.
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At present only about a 20-25 per cent of data points are received when provisional WPI number is announced.
Thus, the final number released after a gap of two months varies significantly with the provisional figures.
For example, the final inflation rate for the week ended July 19 has been revised upwards to 12.54 per cent as against 11.98 per cent when the provisional rate was announced first two months back.