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The wholesale price index- (WPI-) based inflation rate for September decelerated to an 18-month low of 10.7 per cent on broadbase easing of pricing pressure and helped by a high base a year ago. The food inflation eased to 8.08 per cent during September as prices of wheat, fruits, pulses, and protein-rich items fell compared to their levels a year ago, even though prices of vegetables and milk shot up. Inflation for fuel (32.61 per cent) and manufactured (6.34 per cent) items also decelerated during the month. Learn Along: Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country. Wholesale Price Index- WPI is released by the Economic Advisor in the Ministry of Commerce and Industry. It reflects changes in the average prices of goods at the wholesale level — that is, commodities sold in bulk and traded between businesses or entities rather than goods bought by consumers. The purpose of WPI is to inspect movement in prices of goods that reflect supply and demand in industry, construction and manufacturing. The index basket of WPI categorises commodities under three groups — primary articles, fuel and power & manufactured products. The base year for WPI is considered to be 2011-12.
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