India’s wholesale price inflation higher at (-) 0.52% in October

India’s wholesale price inflation based on the wholesale price index (WPI) for October 2023 stood at (-) 0.52 per cent in October 2023 against (-) 0.26 per cent registered in September 2023, preliminary data released by the National Statistics Office (NSO) showed.

The negative rate of inflation in October, 2023 primarily due to  fall in the prices of chemicals and chemical products, electricity, textiles, basic metals, food products, paper and paper products, etc.

Inflation rate for the primary articles group, having a weight of 22.62 per cent in the WPI, increased by 1.15 per cent in October 2023 as prices of minerals (7.81 per cent) and food articles (1.33 per cent) increased in October 2023. However, prices of crude petroleum and natural gas (- 0.60 per cent) and non-food articles (- 0.24 per cent) declined in October, 2023.

Inflation rate for the fuel and power group (weight 13.15 per cent in WPI) increased by 0.65 per cent in October 2023 as prices of mineral oils (1.28 per cent) increased in October 2023. However, prices of electricity (-0.73 per cent) declined in October 2023.

Inflation rate for the manufactured products group (weight of 64.23 per cent) remained constant at 140.3 in October 2023. Out of the 22 groups of manufactured products, 13 groups witnessed  increase in prices, 7 groups witnessed a decrease in prices whereas 2 groups remained unchanged. Some of the important groups that showed increase in prices are manufactured food products; chemicals and chemical products; motor vehicles, trailers and semi-trailers; textiles; other non-metallic mineral products, etc. Some of the groups that witnessed a decrease in prices are manufacture of basic metals; fabricated metal products, except machinery and equipment; rubber and plastic products; other transport equipment etc in October 2023.

Inflation rate based on the food price index consisting of 'food articles' from the primary articles group and 'food product' from the manufactured products group has increased. The annual rate of inflation based on WPI Food Index stood at 1.07 per cent in October 2023 against 1.54 per cent in September 2023.

The final inflation rate based on the updated WPI for August 2023 (Base Year: 2011-12=100) stands revised to (-) 0.46 per cent, respectively.