New Delhi. After the retail inflation rate, now the wholesale inflation rate i.e. Wholesale Price Index has also registered an increase in the month of October. According to government data, the wholesale inflation rate has increased to 2.36 percent in October 2024. Whereas, in September the wholesale inflation rate was 1.84 percent and it was expected to be 2.2 percent. According to the information, wholesale inflation rate has increased due to increase in the prices of food items. According to the data released by NSSO on Thursday, the wholesale inflation rate has increased due to increase in the prices of vegetables, fruits, edible oils etc.
Apart from this, the wholesale inflation rate has also increased due to increase in the prices of manufactured goods, fuel, electricity etc. Earlier, NSSO had said that retail inflation rate increased to 6.21 percent in October. Whereas, in the month of September the retail inflation rate was 5.58 percent. The reason why retail inflation rate is more than the target of 6 percent set by the Central Government and RBI is the increase in the prices of everyday goods. At the same time, due to the international situation, inflation seems to be continuously increasing. Since the war between Russia and Ukraine started in 2022, inflation has reached its peak in many countries of the world. In India it has just crossed the 6 percent mark.
Retail inflation has crossed the target for the first time since August 2023. It is believed that there may be some reduction by February. In such a situation, it does not seem that RBI will be able to take a decision regarding reducing the repo rate in the review of its monetary policy. RBI has maintained the repo rate at 6.50 percent. After the decision of RBI to increase the repo rate, EMI on all types of loans has also been continuously increasing. Now if RBI keeps the repo rate at 6.50 percent only, then instead of reducing the EMI, there may be a possibility of it increasing by a few more basis points.
