Daijiworld Media Network - New Delhi
New Delhi, Nov 14: India’s inflation eased deeper into negative territory in October, with the Wholesale Price Index (WPI) registering a decline of (-) 1.21%, the Ministry of Commerce and Industry announced on Friday. The drop was driven by lower prices of food items, crude petroleum and natural gas, electricity, mineral oils, and basic metal products.
On a month-to-month basis, WPI fell (-) 0.06% in October, compared to (-) 0.19% in September.
Manufactured goods inflation also dipped, declining (-) 0.07% from the previous month as prices of basic metals, chemicals, motor vehicles, trailers, semi-trailers, and other metallic products fell.
Meanwhile, Consumer Price Index (CPI)-based retail inflation continued its downward slide, easing to 0.25% in October. The decline comes on the heels of the GST rate cuts, which have reduced prices of several goods and services. This marks an even sharper drop after September’s CPI inflation fell to an eight-year low of 1.54%.
Food inflation remained firmly in the negative zone, plunging to -5.02% in October from -2.28% in September — the fifth straight month of negative food inflation, offering substantial relief to households. According to the official statement, the sharp decline was driven by lower prices of cooking oils, vegetables, fruits, eggs, cereals, footwear, and transport and communication services, supported by the full-month effect of GST reductions and a favourable base effect.
The GST rate cuts, implemented from September 22, continue to cool prices across multiple sectors, accelerating the disinflation trend.
Looking ahead, the inflation outlook for 2025–26 appears more favourable, aided by a strong base effect, a good southwest monsoon, healthy kharif sowing, adequate reservoir levels, and comfortable foodgrain buffer stocks.
The steady moderation in inflation gives the Reserve Bank of India greater flexibility to maintain a softer monetary stance, potentially lowering interest rates and increasing liquidity to support economic growth.