WPI inflation falls to 19-month low of 8.39% in October on favourable base


India’s affectation grounded on the Wholesale Price Index( WPI) crashed to a 19- month low of8.39 percent in October, data released by the commerce ministry showed on November 14.This is also the first time in 19 months that WPI affectation has fallen to single integers, after staying over 10 percent for the last one- and-a-half times.

WPI affectation was10.7 percent in September and in October 2021, it stood at13.83 percent.The sharp decline in WPI affectation in October was on a fall in prices of energy particulars and manufactured products and a favourable base effect.

While energy and power affectation fell nearly a third to23.17 percent from32.61 percent in September, prices for cultivated products declined to4.42 percent from6.34 percentThe fall in affectation of cultivated products is crucial as these particulars regard for nearly two- thirds of the entire WPI handbasket.

While the indicators for the” energy and power” as well as” cultivated products” groups fell month- on- month in October, that of food increased. still, food prices still fell, thanks to a favourable base effect, to6.48 percent from8.08 percentOverall, the each- commodity indicator of the WPI rose by0.3 percent on a month- on- month base in October after posting successional cascade in July, August and September.

The noncommercial affectation figures were shares hours before the statistics ministry releases the data on the more nearly- tracked retail affectationAt5.30 pm, the government will release Consumer Price Index( CPI) data for October. As per a Moneycontrol bean, CPI affectation probably fell to6.7 percent from7.41 percent in September.

While the Reserve Bank of India( RBI) has formerly failed to meet its affectation accreditation with average CPI affectation staying outside the forbearance range of 2- 6 percent for three successive diggings — a decline in caption retail affectation following a big drop in noncommercial affectation will be a source of relief to policymakers.

The data, still, is doubtful to make the central bank shift significantly from the path it has charted to lower affectation, with economists awaiting another repo rate hike in DecemberThe RBI has raised the repo rate by a stunning 190 base points in the last six- and-a-half months to5.9 percent. Its financial policy commission will meet from December 5- 7.


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