Wholesale food inflation slipped to a two-year low of -0.26 percent
Wholesale inflation has been muted throughout the year
Retail inflation declined to a seven-month low of 3.6 percent, with food inflation declining to its lowest level in 21 months
Consumer inflation declined below 5 percent for the first time in five months in January
The trajectory of wholesale prices contrasts with retail inflation, which declined to a four-month low of 5.2 percent in December
The Niti Aayog member Ramesh Chand-led working group will also recommend changes to the price collection mechanism and computational methodology
Consumer inflation declined to 5.5 percent in November compared with a 14-month high of 6.2 percent in the previous month
WPI trajectory follows consumer inflation which rose to a 14-month high of 6.2 percent in October
Wholesale prices have remained above 1 percent since April
India’s wholesale inflation declined to 1.31 percent in August compared with 2.04 percent in the previous month
The decline in wholesale price index follows the more significant decline in consumer price index below 4 percent for the first time in nearly five years
At present, the base year and basket of goods considered by India is over a decade old, with both CPI and WPI following 2012 as the base year
Consumer inflation had risen above 5% in June amid rising food prices
The rate of inflation based on WPI Food Index increased from 5.52 percent in April, 2024 to 7.40 percent in May, 2024.
The wholesale inflation data comes after the statistics ministry said on April 12 that India's headline retail inflation stood steady at 4.85 percent in March.
The wholesale food inflation cooled down to 3.79 percent last month compared to 5.39 percent in December 2023.
By assuming that real GDP growth for FY25 could also be as low as 6 percent, the interim Budget has seemingly opted for a more conservative approach given that the rate is widely expected to be close to 7 percent for the next fiscal.
India's wholesale inflation, as measured by the Wholesale Price Index, is outside the deflationary zone for the second month in a row.
This assumption is on account of initial estimates that the real GDP growth may touch 7 percent in 2024-25, while the GDP deflator should not be less than 4 percent, an official told Moneycontrol
India's wholesale inflation, as measured by the Wholesale Price Index, has been in negative territory for seven months in a row now
The wholesale price index (WPI)-based inflation rate has been in the negative since April and was (-)0.52 per cent in August. In September last year, it was 10.55 per cent.
India's wholesale inflation, as measured by the Wholesale Price Index, has been in negative territory for the sixth month in a row
US wholesale price increases accelerated in August, a sign that inflation remains stubbornly persistent despite a series of sharp interest rate hikes by the Federal Reserve.
India's wholesale inflation has now spent five months in a row in the negative territory
A higher nominal GDP figure versus the budgeted figure could mean that the Centre’s tax mop-up for 2023-24 may be better than the projections, giving the govt more leeway in meeting its fiscal deficit target.