The wholesale price index-based inflation remained in the negative territory for the sixth straight month in September at (-)0.26 per cent, on easing prices of food articles. The WPI-based inflation rate has been in the negative since April and was (-)0.52 per cent in August. In September last year, it was 10.55 per cent.
Inflation in food articles eased to 3.35 per cent in September, after remaining in double digits in the previous two months. It was 10.60 per cent in August.
“Deflation in September 2023 is primarily due to fall in prices of chemical & chemical products, mineral oils, textiles, basic metals and food products as compared to the corresponding month of the previous year,” the commerce and industry ministry said on Monday.
Fuel and power basket inflation was at (-)3.35 per cent in September, against (-)6.03 per cent in August. In manufactured products, inflation rate was (-)1.34 per cent, as against (-)2.37 per cent in August.
Data released last week showed that the annual retail or consumer price inflation was at 5.02 per cent in September, a 3-month low level.
Suman Chowdhury, chief economist and head (research) at Acuité Ratings & Research, said, “India’s wholesale inflation print still continues to be negative at -0.26 per cent in September 2023 albeit it has tightened from -4.18 per cent in June 2023, respectively. A rapid drop in the increased vegetable prices and overall benign wholesale food inflation that declined by 4.5 per cent MoM, has helped to keep the WPI sequential trajectory at -0.6 per cent MoM.”
He added that WPI inflation is expected to be in positive territory over the next few months, given healthy industrial and consumer demand and the backdrop of increasing prices of crude oil, cereals and pulses. This is set to be hold CPI inflation in the range of 5.0-5.5 per cent over the next two quarters and not allow it to come down sharply. RBI MPC will have limited option but to wait and watch the price scenario till the end of the current fiscal.
(With Inputs from PTI)
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