Wholesale price inflation In India remains negative for 7th consecutive month

New Delhi: The wholesale price index-based inflation in the  country remained in the negative territory for the seventh straight month in October. wholesale price index-based inflation  was at (-) 0.52% in last month. The easing prices of food items was the main reason for this.

The WPI-based inflation rate has been in the negative zone since April and was at (-) 0.26%in September, 2023. In October last year, WPI was at 8.67% Inflation in food articles eased to 2.53% in October. It was 3.35% in the previous month. The fuel and power basket inflation was at (-) 2.47%in October, against (-) 3.35% in September. In manufactured products, the inflation rate was at (-) 1.13%, as against (-) 1.34% in September.

‘The negative rate of inflation in October, 2023, is primarily due to fall in prices of chemicals and chemical products, electricity, textiles, basic metals, food products, paper and paper products, etc. as compared to the corresponding month of previous year,’ the commerce and industry ministry said.

Also Read: India’s retail inflation eases to four-month low 

Meanwhile, the  retail inflation in the country  eased to a four-month low in October. The retail inflation in October is at  4.87%. The cooling prices of food items is the main reason for this. ‘The CPI inflation came in line with our expectations. The moderation provides some relief, especially as core inflation has remained comfortable. However, we expect the trend of sub-5% headline inflation to remain brief with most of FY24 ahead likely to remain above 5%. Overall, we continue to expect the MPC to remain on an ‘extended pause’ phase in rates, with liquidity being used as a more frequent tool to manage the stance,’ said  Upasna Bhardwaj, chief economist, Kotak Mahindra Bank.

Wholesale Price Index (WPI)  is a measure of the average change in the price of goods at a wholesale level or in the wholesale market. Consumer Price Index  (CPI) is a  price index that calculates price changes of goods and services that a consumer has to pay  in the retail market. The monetary police of Reserve Bank of India  is made after reviewing the CPI.