WPI deflation dips to 4.54%; pulses & onion go on stinging

Deflationary trend continued for 11th straight month, with WPI inflation remaining in the negative territory at (-)4.54 per cent in September, but the common man continued to reel under the burden of rising prices of pulses and onion.

The Wholesale Price Index-based inflation came in at (-)4.95 per cent in August. It has been in the negative zone since November. In September last year, inflation was 2.38 <g data-gr-id="36">per cent</g>. Commenting on the inflation numbers, Jaitley said but for onion and pulses, the price situation is “under control”.

“There are only two significant items which we have to be concerned about. First was onion, which had because of seasonal variation gone up. Onion prices have substantially cooled since then and presently it is only the pulses whose price situation needs to be handled,” Jaitley said.

The Consumer Affairs department is the nodal ministry handling the issue, he said. Inflation in food articles inched up to 0.69 <g data-gr-id="31">per cent</g> in September, from (-)1.13 per cent in August.

Onion and pulses turned costlier, with inflation at 113.70 per cent and 38.56 per cent respectively during September, according to official data released on Wednesday. Inflation in pulses remained over 36 per cent for four months in a row.

India Ratings & Research Chief Economist Devendra Kumar Pant said: “Decline in deflation is on expected lines. With favourable base effect <g data-gr-id="32">waning</g>, wholesale inflation is expected to increase. The cause of worry now <g data-gr-id="35">is pulses</g>.”

As per the official data, the rate of price rise in vegetables was at (-)9.45 per cent as against (-)21.21 per cent in August. <g data-gr-id="38">Inflation</g> in fuel and power segment was (-)17.71 per cent while that of manufactured products was (-)1.73 per cent in September.