Sept WPI set to rise on higher crude prices

Sept WPI set to rise on higher crude prices

The country's headline inflation for September is set to rise after an increase in average price of Indian crude oil basket to 7.4% in the previous month.

The wholesale price inflation numbers are expected on Monday. In August, the wholesale inflation number print was 4.53%.

Food inflation, however, is expected to be lowered as the government data showed a month-on-month decline in potatoes, onion and tomatoes.

Wholesale potato prices have declined by 1% in September, onions by 6% and tomatoes by a good 14%, official numbers from the department of consumer affairs showed.

Last week, the retail inflation too rose marginally to 3.77% on the back of higher food and fuel prices. Retail food inflation rose by half a percentage point and the core,which excludes the volatile food and fuel, went up to 5.8%.

The Reserve Bank of India, which although, does not track WPI for its monetary policy, has warned that global headwinds from escalating trade tensions, volatile and rising oil prices and heightened global financial conditions pose substantial risk to growth and inflation outlook.