October WPI inflation dips

The WPI inflation for the month of October 2012 eased marginally to 7.45% from 7.81% in the previous month . However, stickiness still seemed evident with inflation plateauing around the 7.00% plus mark for the last eleven months, and also with series of upward revisions in the earlier months. Despite the hike in fuel price in November 2012, fuel and power inflation dropped marginally (by 18 basis points) to 11.71% from 11.88% in September 2012.Food inflation (which has a weightage of
14.34% in the WPI), for the month of October 2012 also reduced (by 124 bps) to 6.62% from 7.86% in September 2012,
seemingly because of the positive impact of a good monsoon which led to a decent agricultural produce.