WPI inflation negative for a sixth month

India’s Wholesale Price Index (WPI) inflation rose in September but remained negative for the sixth consecutive month. But at -0.26%, it is now close to positive territory, thanks to fuel, power and manufactured product prices.

- Rhik Kundu

WPI inflation was -0.52% in August, -1.36% in July, -4.12% in June, -3.48% in May and -0.92% in April, data released by the commerce and industry ministry on Monday showed. A year ago, it stood at 10.55%. Economists polled by Reuters had estimated WPI inflation to rise at 0.5% in September.

Though fuel and power prices declined in September, the contraction was slower than in the previous month. It was -3.35% in September, compared with -6.03% in August.

In manufactured products, the inflation stood at -1.34% in September, compared with -2.37% in August.

Meanwhile, easing vegetable prices led to wholesale food inflation falling to 1.54% in September from 5.62% in August.

“Deflation in September 2023 is primarily due to the fall in prices of chemical and chemical products, mineral oils, textiles, basic metals and food products as compared to the corresponding month of previous year," an official statement said.