Food, fuel drag inflation down

Overall food inflation (food articles plus manufactured food) slipped to 2% in September from 4.4% in August

Inflation based on the Wholesale Price Index (WPI) fell in September, reversing a two-month trend.  At 2.6 per cent, it was nearly 60 basis points (bps) lower than the 3.2 per cent recorded in August. The decline was led by an over 240 bps fall in food inflation and a 100 bps dip in fuel inflation. Core inflation was more or less stable.

WPI, which turned positive in July after four months of sustained decline, had been rapidly rising until August, led by higher food and fuel inflation. In September, however, the trend saw a reversal.

Overall food inflation (food articles plus