New Delhi, Nov 14: India’s annual rate of inflation, based on the Wholesale Price Index (WPI), fell deeper in the negative zone to (-) 1.21 per cent during October this year due to the decline in prices of food articles, crude petroleum & natural gas, electricity, mineral oils and manufacture of basic metals, according to a statement issued by the Ministry of Commerce and Industry on Friday.
The month-over-month change in WPI for October stood at (-) 0.06 per cent as compared to the corresponding figure of (-) 0.19 per cent in the previous month of September.
The inflation rate for manufactured goods during October decreased by (-) 0.07 per cent compared to the previous month as the prices of metallic mineral products, basic metals, chemicals and chemical products, motor vehicles, trailers, and semi-trailers declined during the month, official data showed.
Meanwhile, the country’s inflation rate based on the Consumer Price Index (CPI) declined further to 0.25 per cent in October as the impact of the GST rate cut brought down the prices of goods and services during the month, according to figures released by the Ministry of Statistics on Wednesday.
The retail inflation eased further, after having plummeted to an over 8-year low of 1.54 per cent in September, as prices of food items and goods across sectors fell during the month.
The declining trend in food prices continued in October as food inflation fell deeper in the negative zone at -5.02 per cent from -2.28 per cent in September. Food inflation has now continued to stay negative for the fifth consecutive month, bringing welcome relief to household budgets.
“The decline in headline inflation and food inflation during October is mainly attributed to the full month’s impact of the decline in GST, favourable base effect, and to drop in inflation of cooking oils, vegetables, fruits, egg, cereals, footwear and transport and communication,” according to the official statement.
The GST rate cuts, which kicked in on September 22, are bringing down prices across goods, leading to a further reduction in the inflation rate.
The inflation outlook for 2025-26 has also become more benign due to large favourable base effects combined with the good southwest monsoon, healthy kharif sowing, adequate reservoir levels, and comfortable buffer stocks of foodgrains.
The decline in the inflation rate gives the RBI more headroom to continue with a soft money policy by cutting interest rates and injecting more money into the economy to spur growth.
–IANS