Wholesale Price index up, Exports decline

Soaring prices of onions, vegetables, and fuel prices have increased the wholesale price Index in October. WPI stood at 3.6 % which was high compared to past 6 months.The increase in WPI has a direct effect on the interest rates and the Reserve Bank of India RBI may not cut the interest rates in its next policy meeting.

The data released by commerce ministry showed that inflation stood at 3.59 % which was recorded 2.6 % in September.Retail consumer price Index has also reached its peak of 7 months. The major cause for the rise in WPI is the rise of food, fuel, and houses.

Food prices grew up by 4.3 % compared to 2 % in September.vegetable prices grew up 36 % and onion prices rose by 127 %.The Global crude oil prices have also gone up and this has also affected the domestic prices

Exports decline

The exports have contracted after a year because of the implementation of GST.Exporters dispatched shipments to avail higher refunds in September.In October the exports grew at 1.2 %.

The exports saw a decline in labor-intensive rates such as Textiles, Medicines, Leather, gems, jewelry.

The imports have risen by 7.6 % and this has resulted in the widening of trade deficit.