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India's WPI Inflation Dips to -1.21% Amid Falling Food, Fuel Prices

India's wholesale inflation has fallen deeper into negative territory, reaching -1.21% in October. This marks a continued decline driven by falling prices across food articles, crude petroleum, and manufactured goods. The GST rate cuts implemented in September are now showing their full impact on reducing prices across sectors. With food inflation staying negative for five consecutive months, households are getting welcome relief while the RBI gains more room for growth-supportive policies.

Key Points: India WPI Inflation Falls to Negative 1.21 Percent in October

  • WPI inflation fell to -1.21% in October from previous month's negative reading
  • Food inflation dropped deeper to -5.02% marking fifth consecutive negative month
  • Manufacturing goods inflation decreased by 0.07% as metal and chemical prices declined
  • GST rate cuts and favorable base effects contributed significantly to inflation decline
  • Retail inflation also eased to 0.25% providing relief to household budgets
  • RBI gains more policy flexibility with benign inflation outlook for 2025-26
2 min read

India's WPI inflation falls further in negative zone to (-) 1.21 per cent during October

India's wholesale inflation falls deeper into negative territory at -1.21% in October as food prices decline for fifth straight month, giving RBI policy flexibility.

"The decline in headline inflation and food inflation during October is mainly attributed to the full month's impact of the decline in GST - Ministry of Commerce and Industry"

New Delhi, Nov 14

India's annual rate of inflation, based on the Wholesale Price Index (WPI), fell deeper in the negative zone to (-) 1.21 per cent during October this year due to the decline in prices of food articles, crude petroleum & natural gas, electricity, mineral oils and manufacture of basic metals, according to a statement issued by the Ministry of Commerce and Industry on Friday.

The month-over-month change in WPI for October stood at (-) 0.06 per cent as compared to the corresponding figure of (-) 0.19 per cent in the previous month of September.

The inflation rate for manufactured goods during October decreased by (-) 0.07 per cent compared to the previous month as the prices of metallic mineral products, basic metals, chemicals and chemical products, motor vehicles, trailers, and semi-trailers declined during the month, official data showed.

Meanwhile, the country's inflation rate based on the Consumer Price Index (CPI) declined further to 0.25 per cent in October as the impact of the GST rate cut brought down the prices of goods and services during the month, according to figures released by the Ministry of Statistics on Wednesday.

The retail inflation eased further, after having plummeted to an over 8-year low of 1.54 per cent in September, as prices of food items and goods across sectors fell during the month.

The declining trend in food prices continued in October as food inflation fell deeper in the negative zone at -5.02 per cent from -2.28 per cent in September. Food inflation has now continued to stay negative for the fifth consecutive month, bringing welcome relief to household budgets.

"The decline in headline inflation and food inflation during October is mainly attributed to the full month's impact of the decline in GST, favourable base effect, and to drop in inflation of cooking oils, vegetables, fruits, egg, cereals, footwear and transport and communication," according to the official statement.

The GST rate cuts, which kicked in on September 22, are bringing down prices across goods, leading to a further reduction in the inflation rate.

The inflation outlook for 2025-26 has also become more benign due to large favourable base effects combined with the good southwest monsoon, healthy kharif sowing, adequate reservoir levels, and comfortable buffer stocks of foodgrains.

The decline in the inflation rate gives the RBI more headroom to continue with a soft money policy by cutting interest rates and injecting more money into the economy to spur growth.

- IANS

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Reader Comments

R
Rohit P
While lower inflation is welcome, I'm concerned about negative WPI. This might indicate weak demand in the economy. Hope the RBI's rate cuts can stimulate growth without causing inflation to spike later.
A
Arjun K
The GST rate cuts are finally showing results! My small business has seen better sales as customers have more purchasing power. Good monsoon and buffer stocks should keep food prices stable. 👍
S
Sarah B
As someone who recently moved to India, I'm impressed by how the government is managing inflation. The coordinated approach between monetary and fiscal policies seems to be working well for the economy.
M
Meera T
But are these price drops actually reaching common people? In my local market, vegetable prices haven't come down as much as these numbers suggest. There might be a gap between wholesale and retail prices.
V
Vikram M
Perfect timing for Diwali shopping! Lower inflation means our money goes further. Hope the RBI cuts interest rates soon so EMIs become cheaper too. 🙏

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