India's annual rate of inflation based on wholesale prices went up in October to 3.59 per cent, official data showed on Tuesday.
Data released by the commerce and industry ministry on Tuesday showed inflation, measured by the wholesale price index (WPI), rose an annual 3.6% in October, higher than the previous month's rise of 2.6% and 1.3% increase in October 2016.
"The annual rate of inflation, based on monthly WPI, stood at 3.59 per cent (provisional) for October 2017 (over October 2016) as compared to 2.60 per cent (provisional) for the previous month and 1.27 per cent during the corresponding month the previous year", the ministry said in its review of October WPI.
Among manufactured products, inflation rate for "manufactured food products" group rose 0.1 per cent due to higher price of honey, meat, preserved / processed fish, crustaceans, molluscs and products thereof, instant coffee and coffee powder with chicory, mustard oil, manufacture of cocoa, chocolate and sugar confectionery, manufacture of macaroni, noodles, couscous and similar farinaceous products, buffalo meat, gur, rice bran oil, sooji (rawa), wheat flour (atta), spices (including mixed spices), groundnut oil, chicken/duck, processed ready to eat food, starches and starch products, bagasse, processed and preserved fruit and vegetables and palm oil.
Wholesale prices had accelerated in August to 3.24 per cent from July's rise of 1.88 per cent and an increase of 0.90 per cent was reported for June.
Besides, industrial production for September expanded at 3.8 per cent, on poor showing by the manufacturing sector coupled with decline in consumer durables output. Meanwhile, inflation of non-food items (all commodities excluding food items) moved up to 3.7% in October 2017 from 2.9% in September 2017.
In terms of food prices, the YoY (Year-over-year) wholesale inflation rate for onion was higher by 127.04 per cent, whereas for potatoes it plunged by (-) 44.29 per cent.
Figures say it all even if the Narendra Modi government remains in denial over steep price hike in essential food articles in the recent times. However, the price of manufacture of knitted and crocheted fabrics (2 per cent) and synthetic yarn (1 per cent) moved up. Fuel and power inflation hit 10.5% compared to previous month's 9% rise.
It was 4.2 percent in October past year.
This was mostly driven by food and fuel prices.
"However, this is due to adverse weather conditions and the situation should ease out in the coming months", he said.
"Ficci would like to reiterate that under the present scenario inflation targeting by the central bank may not be the best approach".