Wholesale Price Index (WPI) Inflation Registers Sixth Consecutive Month of Contraction at -0.26% in September as Vegetable Prices Take a Dive

Official data reveals that the Wholesale Price Index (WPI) of inflation continued its negative streak for the sixth consecutive month, recording a -0.26% figure in September, a marginal improvement from the -0.52% observed in August. This decline was primarily driven by a substantial drop in vegetable prices, plummeting from 48.39% in August to -15% in September.

India's retail inflation for September hit a three-month low at 5.7%, while the Index of Industrial Production showed a substantial increase, reaching 10.3% in August. The Ministry of Commerce, in its statement, attributed the deflation in September to declining prices in the following sectors:

Chemical and chemical products
Mineral oils
Textiles
Basic metals
Food products

The inflation rate for articles eased to 3.70% in September, a significant drop from the 6.34% recorded in August. In the meantime, fuel and power prices experienced a contraction of 3.35%, compared to the 6.03% figure seen in August. The deflation rate for manufactured products in September was noted at 1.34%, a slight improvement from the 2.37% observed in August.

Notable fluctuations were observed in specific categories, with onion prices surging to 55.05% in September from 31.42% in August. Eggs, meat, and fish prices experienced a slower deflation rate of 2.86% in September, compared to 2.98% in August. Furthermore, potato prices continued to drop, with a 25.24% decrease in September, as opposed to the 24.02% decrease in August.

What Does the WPI Inflation Measure Entail?

The Wholesale Price Index of inflation provides a comprehensive measure of overall producer prices within an economy during a specific timeframe. It reflects the prices of goods and services before they reach the end consumer, representing the prices charged to wholesale buyers for goods and services produced within the economy.

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