India's Wholesale Prices Drop For Seventh Straight Month, Hits -0.52 Per Cent In October; Food Inflation Drops To 2.53 Per Cent

In a reflection of easing food prices, India's Wholesale Price Index (WPI) marked its seventh consecutive month in negative territory, hitting (-) 0.52 per cent in October.

This extended decline, present since April, sharply contrasts with the 8.67 per cent recorded in the same month last year, reported Indian Express.

The inflation rate for food articles dipped to 2.53 per cent in October, down from 3.35 per cent in the previous month, contributing to the overall negative trend.

Key Contributors To Negative Inflation

The Commerce and Industry Ministry, in its statement on Tuesday (14 November), pointed to various contributing factors.

These include the fall in prices of chemicals, chemical products, electricity, textiles, basic metals, food products, paper, and paper products compared to the same month in the previous year.

While the fuel and power basket saw a slight improvement with an inflation rate of (-) 2.47 per cent in October compared to (-) 3.35 per cent in September, manufactured products showed a marginal uptick at (-) 1.13 per cent, improving from (-) 1.34 per cent in the preceding month.

In tandem with the WPI data, the Consumer Price Index (CPI) for October touched a five-month low at 4.87 per cent, as revealed on Monday (13 November).

The consistent negative trend in WPI indicates a continued deflationary phase, particularly in critical sectors like food, fuel and manufacturing.