In October, the Wholesale Price Index (WPI)-based inflation continued its negative trend for the seventh consecutive month, registering a decline of 0.52 percent. This downward trajectory, initiated in April, persisted with a marginal improvement from September's rate of -0.26 percent. In stark contrast to the 8.67 percent WPI recorded in October of the previous year, the current figures indicate a significant decrease.
The decline in inflation was particularly attributed to reduced prices in various sectors, including chemicals, electricity, textiles, basic metals, food products, paper, and paper products. Notably, food article inflation saw a decrease from 3.35 percent in September to 2.53 percent in October. The fuel and power basket also experienced a lessened negative inflation rate, standing at -2.47 percent in October compared to -3.35 percent in September.
In the realm of manufactured products, the inflation rate improved slightly from -1.34 percent in September to -1.13 percent in October. Concurrently, the annual retail or consumer price inflation for October hit a five-month low at 4.87 percent, as revealed in data released on Monday. This persistent deflationary trend, particularly in the WPI, may indicate ongoing economic adjustments and fluctuations, influenced by factors such as global commodity prices and domestic demand dynamics.