India’s wholesale price index (WPI) based inflation eased further into negative territory to 1.21 per cent in October this year on an annual basis, down from 0.13 per cent in September. According to the data released by the Ministry of Commerce and Industry, the negative rate of inflation during the last month is primarily due to a decrease in prices of food articles, crude petroleum and natural gas, electricity, mineral oils and the manufacture of basic metals. 

 

 

 

On a year-over-year basis, the WPI food index registered deflation of five per cent, staying in the negative zone for the second straight month. Meanwhile, primary articles deflated by 6.18 per cent, fuel and power segment also registered deflation of 2.55 per cent. Inflation in manufactured products dipped to 1.54 per cent in October from 2.33 per cent in September this year. 

 

 

WPI reflects wholesale-level price changes, differing from CPI, which measures consumer-level price variations. This decline in WPI is in sync with the easing of retail inflation, which slipped to a record low of 0.25 per cent in October.