India's Wholesale Inflation Drops To -0.52 Per Cent In October

The negative rate of inflation in October is primarily because of fall in prices of chemicals and chemical products, electricity, textiles, basic metals, food products, paper and paper products, etc

India's wholesale price index-based (WPI) inflation stayed in the deflationary zone for the seventh straight month in October at (-) 0.52 per cent on easing prices of food items. The WPI-based inflation rate has been in the red since April and was at (-) 0.26 per cent in September, 2023. The WPI was recored at 8.67 per cent in October last year. 

The negative rate of inflation in October is primarily because of 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. 

According to the release by the commerce and industry ministry on Tuesday, inflation in food articles eased to 2.53 per cent in October. It was 3.35 per cent in the previous month. "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 release said.

The fuel and power basket inflation was at (-) 2.47 per cent in October, against (-) 3.35 per cent in September. In manufactured products, the inflation rate was at (-) 1.13 per cent, as against (-) 1.34 per cent in September. The annual retail or consumer price inflation for October hit a 5-month low of 4.87 per cent, data released on Monday showed. 

On the other hand, the headline retail inflation for October dropped to hit a 5-month low 4.87 per cent as against 5.02 per cent in September, according to the latest data released by the National Statistical Office (NSO) on Monday. 

The headline inflation has come back to the Reserve Bank of India (RBI)'s comfort zone of below 6 per cent,  due to the combination of a favourable base effect and cooling prices of some food items. It was at 7.56 per cent in September 2022. In June this year, the previous low inflation was recorded at 4.87 per cent.

Food inflation, which accounts for nearly half of the overall consumer price basket, jumped 6.61 per cent in October as compared with 6.56 per cent in September.