Wholesale price inflation marginally lower at 7.45 % in October

The annual rate of inflation based on the wholesale price index (WPI) unexpectedly eased to its slowest pace in eight months in October 20102 at 7.45 per cent year-on-year, from 7.81 per cent in the previous month.

WPI-based inflation stood at 9.87 per cent during the corresponding month of the previous year.

The official wholesale price index for 'all commodities' (base: 2004-05 = 100) rose 0.2 per cent to 168.7 (provisional) in October 2012 from 168.4 (provisional) in the previous month.

Build-up of inflation so far during the current financial year was 4.78 per cent compared to a build-up of 5.02 per cent in the corresponding period of the previous year.

Despite the downtrend in inflation, prices of some of the essential food items such as rice, wheat pulses and potato showed an increase during October 2012, although food items as a group showed a decline at 6.62 per cent during the month.

Food articles have a 14.3 per cent share in the WPI basket.