India’s wholesale price index (WPI)-based inflation was (-)0.26 per cent (Provisional) for the month of September, 2023, according to the data released by the Ministry of Commerce & Industry. The WPI inflation rate during August stood at (-)0.52 per cent and and 10.55 percent in September 2022. The WPI-based inflation rate has been in the negative for the sixth consecutive month since April.
At (-)0.26 per cent, the latest print is well below the consensus estimate, with economists having predicted it likely rose to 0.7 percent last month.
“Deflation in September 2023 is primarily due to fall in prices of chemical & chemical products, mineral oils, textiles, basic metals and food products as compared to the corresponding month of previous year,” the ministry said.
While the wholesale inflation for primary articles for September stood at 3.70 per cent in comparison to 6.34 per cent in August, fuels & power inflation came at (-)3.35 per cent as against (-)6.03 per cent in August. Manufactured products inflation was at (-)1.34 per cent as against (-)2.37 per cent. Meanwhile, the food index for the month of September eased to 1.54 per cent from 5.62 per cent in August.
Earlier this month, India’s Consumer Price Index (CPI) based inflation moderated to a three-month low of 5.02 per cent in September from 6.83 per cent in August.
The all-commodity index of the WPI also fell on a month-on-month (MoM) basis in September to (-)0.59 per cent. The index for primary articles declined by 3.80 per cent to 182.4 in September 2023 from 189.6 in August 2023. The Index for fuel & power increased by 2.34 per cent to 153.1 in September 2023 from 149.6 in August 2023. And, the index for manufactured products increased by 0.36 per cent to 140.3 in September, 2023 from 139.8 in August, 2023.
“The month-over-month increase in price is mainly contributed by basic metals; other transport equipment; fabricated metal products; machinery & equipment; rubber & plastic products etc. Some of the groups that witnessed a decrease in prices are food products; motor vehicles, trailers & semi-trailers, electrical equipment, leather & related products, chemical & chemical products etc. in September 2023 as compared to August 2023,” the ministry said.