India’s wholesale price index (WPI)-based inflation rose to 11.39 per cent in September from 9.92 per cent in August, according to government data. The increase was driven by higher prices of food, manufactured items, and fuel and power.

Inflation in the food index increased to 8.66 per cent in September from 7.05 per cent in the previous month. Inflation in manufactured items reached a series high of 9.76 per cent, compared with 8.37 per cent in August.

The fuel and power basket recorded inflation of 25.85 per cent in September, up from 22.93 per cent in August. The Commerce and Industry Ministry identified mineral oils, food articles, crude petroleum and natural gas, coal and lignite, basic metals, chemicals, textiles, rubber and plastic products, and electrical equipment as key contributors.

WPI inflation has risen since the beginning of the current fiscal year. The West Asia war and the resulting blockade of the Strait of Hormuz have increased global crude oil and fertiliser costs, affecting food and commodity prices. The strait is an important route for India’s crude oil imports.

The Reserve Bank of India’s monetary policy committee raised the benchmark policy rate by 25 basis points last week to 5.50 per cent. Separately, retail inflation rose to a 23-month high of 5.54 per cent in September from 4.83 per cent in August, with the increase attributed to a sharp rise in food prices.