New Delhi, Oct 14 (KNN) While the headline inflation went up by 6.46 per cent in September the price rise of the manufactured products reflect an industrial slowdown, hitting the vulnerable small and medium enterprises the most.  

The WPI inflation of the manufactured products, which have weightage of about 65 per cent in the overall inflation-measuring basked, has sharply dropped to 2.03 per cent in September from 6.47 per cent in the same month a year ago.

The sharp fall in core inflation reflects the slowdown in the country’s industrial economy. Several items within the manufactured products have shown decline in prices as the demand compression has set in. These include sugar, edible oil, iron and semis, cement, basic metals and alloys.

However, those in the industry, particularly in the small scale sector, feel that the interest rates have been kept tight in view of the headline inflation.  For as much as 65 per cent of the products in the inflation baskets, the price rise has only about two per cent.

Earlier last week, the release of industrial growth figure of mere 0.6 per cent in September reflected the sorry state of affairs that the Indian industry finds itself in. The manufacturing and mining sectors are in shambles putting millions of jobs at stake, analysts point out. (KNN/PC)