WPI Eases To Three Month Low As Food Prices Fall

The country’s wholesale price index contracted to 8.63 percent and reached a three-month low providing coveted ease. The ease of 1.89 percent is attributed to the fall in price of food items, especially vegetables.

The data the Ministry of Commerce and Industry shared revealed that WPI registered a decline to 8.63 in November from 13.54 in October owing to price relief in vegetables. Data suggest that vegetable prices stood at 28.57 percent in November against 63. 04 percent in October. Onion has registered a fall of 2.85 percent in price in November.

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The fuel and power category saw a deeper deflation of 5.83% in November, slightly higher than the 5.79% recorded in October.

In contrast, inflation in the manufactured products category rose to 2% in November, up from 1.50% in October.

According to a ministry statement, “The positive inflation rate in November 2024 is mainly due to rising prices of food articles, food products, other manufacturing items, textiles, machinery, and equipment.”

Retail inflation, measured by the Consumer Price Index (CPI), dropped to 5.48% in November, falling within the Reserve Bank of India’s (RBI) tolerance band. This is a decline from the 14-month peak of 6.21% in October, sparking optimism for a possible policy rate cut during the RBI’s February review.