Wholesale Price Inflation Falls to New Lows Amid Food and Fuel Deflation

Wholesale price inflation in India dipped to 0.13% in September due to lower prices of food, fuel, and manufactured items. Food article deflation was pronounced, while manufactured products and fuel prices saw moderate cooling. The RBI maintained a steady policy rate as retail inflation also hit an 8-year low.

India's wholesale price inflation (WPI) saw a significant reduction in September, dropping to 0.13% as food, fuel, and manufactured goods became cheaper. The latest data, released on Tuesday, marked a decrease from 0.52% in August and 1.91% in September of last year.

The Ministry of Industry noted that despite this overall decrease, certain sectors like food product manufacturing, non-food articles, and textiles still experienced price increases. A detailed analysis showed that food articles faced a steep 5.22% deflation, particularly in vegetables, which witnessed a 24.41% price decline.

Meanwhile, manufactured products experienced a slight easing of inflation to 2.33%, and fuel and power registered a deflation of 2.58%. The Reserve Bank of India's decision to maintain the benchmark policy rates at 5.5%, amid an 8-year low in retail inflation, reflects a cautious approach to ensuring economic stability.

(With inputs from agencies.)