India's wholesale inflation remains in negative zone in October

"The annual rate of inflation based on all India Wholesale Price Index (WPI) number is (-) 0.52% (Provisional) for the month of October, 2023 (over October, 2022) against (-) 0.26% recorded in September, 2023," said a release from Ministry of Commerce & Industry on Tuesday.

Negative rate of inflation in October, 2023 was primarily due to fall in prices of chemicals and chemical products, electricity, textiles, basic metals, food products, paper and paper products among others.

This is the seventh month in a row when wholesale inflation has stayed in the negative zone. The WPI-based inflation was 8.67% in October 2022.

India's retail inflation has also shown declining trend and it eased to 4.87% in October 2023 as against 5.02% in the previous month, as per data released by Ministry of Statistics and Programme Implementation (MoSPI) released on November 13.

As per official release, the month-over-month change in WPI index for the month of October, 2023 stood at 0.40% as compared to September, 2023.

The data on WPI-based inflation showed food articles inflation was 2.53% in October this year. The fuel and power basket inflation was recorded at - 2.47% in October this year as against -3.35% in the previous month. Manufactured products inflation rate was -1.13% in October this year as against -1.34% in September.

The WPI captures the average movement of wholesale prices of goods and is primarily used as a GDP deflator. It reckons only basic prices and does not include taxes, rebate/trade discounts, transport and other charges.

(With UNI inputs)