October WPI Inflation stood at -1.21% as compared to 0.13% recorded in September. The government highlighted that the negative rate of inflation in October is primarily due to decrease in prices of food articles, crude petroleum & natural gas, electricity, mineral oils and manufacture of basic metals etc.
Primary articles recorded a deflation of -6.18%, fuel and power inflation stood at -2.55%, and inflation in manufactured products eased to 1.54%. Food index, consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group stood at -5.04% from -1.99% in September.
The government slashed GST rates on daily-use mass-consumption items as part of a tax rationalisation move that reduced the four-tier structure to just two slabs — 5% and 18%. The revised rates came into effect on September 22.
Food deflation deepens to 8.31%
Deflation in food articles was 8.31% in October, compared to 5.22% in September, with onion, potato, vegetables and pulses seeing a decline in prices.
In vegetables, deflation was 34.97% in October, against 24.41% in September. In pulses, deflation was at 16.50% in October, while in potato and onion it was 39.88%and 65.43%, respectively.
Fuel and power also witnessed a deflation at -2.55% from 2.58% recorded in September.
