Wholesale inflation in negative zone for sixth month in a row

Sandeep Dikshit

New Delhi, October 16

Wholesale Price Index-based (WPI) inflation remained negative for the sixth straight month in September due to easing prices of food items, especially vegetables. The WPI was at (-) 0.26% in September as against (-) 0.52% in August. In September last year, it was 10.55%.

Inflation in food articles eased to 3.35% in September, after remaining in double digits in the previous two months. It was 10.60% in August.

Vegetable prices ease

• The WPI was at (-) 0.26% in September as against (-) 0.52% in August
• Inflation in food articles eased to 3.35% after remaining in double digits for two months
• In vegetables, inflation was (-) 15% vs 48.39% in August

In vegetables, inflation was (-) 15%, as against 48.39% in August. In potato, it was (-) 25.24% in September, as against (-)24.02% in the previous month. However, some hardening in inflation was seen in food items such as pulses, onion, milk and fruits during the month under review. Inflation in pulses was 17.69% while in onion it was at a high of 55.05% during the month.

Fuel and power basket inflation was at (-) 3.35% in September, against (-) 6.03% in August. In manufactured products, inflation rate was (-) 1.34%, as against (-) 2.37% in August.

“Deflation in September 2023 is primarily due to fall in prices of chemical and chemical products, mineral oils, textiles, basic metals and food products as compared to the corresponding month previous year,” the Commerce Ministry said on Monday.

In “primary articles”, the index declined by 3.80% in September as compared to August. While prices of crude petroleum and natural gas (10.31%) and non-food articles (0.86%) increased, those of minerals (-4.92%) and food articles (-6.46%) declined in September as compared to the previous month.

The index for “fuel & power” increased by 2.34% over the previous month. Prices of mineral oils (3.67%) and electricity (0.51%) marginally increased while prices of coal (-0.65%) declined.