India's wholesale inflation stays in negative zone for sixth month

Digital Desk: India's Wholesale Price Index (WPI)-based inflation has remained in negative territory for the sixth consecutive month in September, recording a figure of (-)0.26 percent. The main driving factor behind this trend is the easing prices of food articles.

This marks a notable improvement from August, when the WPI-based inflation was at (-)0.52 percent, signifying a milder rate of deflation. A year ago, in September, the inflation rate was substantially higher at 10.55 percent, highlighting the current period's stark contrast.

The decrease in inflation can be attributed to the moderation in food article prices, which registered a rate of 3.35 percent in September, significantly lower than the double-digit figures seen in the previous two months, particularly in August, when it stood at 10.60 percent.

According to the Commerce and Industry Ministry, the deflation witnessed in September 2023 is primarily due to falling prices in sectors such as chemical and chemical products, mineral oils, textiles, basic metals, and food products when compared to the corresponding period in the previous year.

Notably, the fuel and power basket's inflation rate improved to (-)3.35 percent in September from (-)6.03 percent in August. In manufactured products, the inflation rate also showed a decline, recording (-)1.34 percent as opposed to (-)2.37 percent in August.

In contrast to the wholesale price index, data released last week indicated that the annual retail or consumer price inflation stood at 5.02 percent in September, marking a three-month low level.