The wholesale price inflation accelerated to a four-month high of 2.36 per cent in October, driven by higher food and manufactured goods prices, government data showed on Thursday.

“Wholesale Price Index (WPI)-based inflation was 1.84 per cent in September and -0.26 per cent a year ago,” the data said.

Food inflation surged to 13.54 per cent in October, up from 11.53 per cent in September, primarily due to a 63.04 per cent rise in vegetable prices.

“Inflation in potatoes and onions remained elevated at 78.73 per cent and 39.25 per cent, respectively,” the data added.

Fuel and power inflation eased to a deflation of 5.79 per cent in October, while manufactured goods inflation rose to 1.50 per cent.

Icra senior economist Rahul Agrawal said food inflation alone pushed up the headline WPI print by as much as 63 basis points between September and October 2024.

On a year-on-year (YoY) basis, the core WPI print rose to 0.3 per cent in October 2024 from 0.1 per cent in September 2024, while remaining
muted.

“Owing to the expected softening in food inflation, Icra estimates the WPI inflation to ease to approximately 2 per cent in November 2024,” Agrawal said.

Sujan Hajra, chief economist and executive director, Anand Rathi Shares and Stock Brokers, said: “We expect the manufacturing inflation to continue its uptrend, while a better harvest shall ease supply concerns of food items.

Fuel inflation remaining in negative territory has been a positive factor thus containing the spread of inflation across categories.”

Suman Chowdhury, executive director and chief economist, Acuité Ratings & Research, said: “While manufacturing inflation has picked up to 1.50 per cent YoY, it still remains mild.

“Given the arrival of the kharif crop and a favourable outlook on rabi sowing, food inflation is likely to trend its way down and along with soft commodity prices, should keep the WPI inflation print within 3.0 per cent in the current fiscal.”