Wholesale Price Index inflation eases to 0.33% in September

Wholesale inflation eased to more than three-year low of 0.33 per cent in September mainly due to falling prices of fuel and certain food articles, according to official data. wholesale price index-based inflation was 1.08 per cent in August this year and 5.22 per cent in September 2018. previous low was recorded in June 2016 when wholesale inflation was in negative at 0.1 per cent.

Data released by Commerce and Industry Ministry

Inflation print for food articles, as a basket, remained nearly flat at 7.47 per cent during month. Prices of potato fell by a furr 22.50 per cent as against a decline of 21.28 per cent in August, Commerce and Industry Ministry data showed. For fuel and power category, inflation came in at (-) 7.05 per cent, as against (-) 4 per cent in preceding month. For manufactured products, it slipped to negative territory at 0.42 per cent in September as against change in prices during August.

Only minerals and manufactured food products recorded a rise in inflation

" sequential slide in WPI inflation to a lower than forecast 0.3 per cent in September 2019, while bro-based, was driven primarily by deeper disinflation in fuel and power, and core WPI. "Only two of major categories, namely minerals and manufactured food products recorded an uptick in inflation in September 2019, underscoring relatively benign inflationary conditions at wholesale level for food items," said iti Nayar, an ecomist at ICRA.

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With sharp slide in inflation for fruit getting offset by spike in vegetables, driven by onions, primary food inflation remained elevated at 7.5 per cent in September 2019, she said. Rahul Gupta, Currency Research He, Emkay Global Financial Services said RBI prefers looking at CPI print, however, subdued wholesale inflation still keeps RBI rate cut on cards.

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