NEW DELHI, Oct 16: According to the Wholesale Price Index, wholesale inflation in India remained zero through September for the sixth consecutive month, according to official statistics released on Monday. It entered the negative range in April of this year. Similar to this, the WPI was reported to be negative in the early stages of Covid in July 2020. According to official figures issued by the Ministry of Commerce and Industry, wholesale inflation in September was (-) 0.26 percent compared to (-) 0.52 percent in August and (-) 1.23 percent in July.The main cause of the deflation in September is a decrease in prices for food items, mineral oils, textiles, basic metals, and chemicals and chemical products when compared to the same month last year. Following the statistics ministry’s announcement on October 12 that headline retail inflation had dropped to a three-month low of 5.02 percent in September, the WPI data was released on October 13. Every month on the 14th (or the following working day), the government publishes index numbers for wholesale pricing. The index figures are created using information gathered from official sources and particular manufacturing facilities located throughout the nation.In October 2022, wholesale inflation as a whole was 8.39 percent; it has subsequently decreased. Notably, up until September of last year, inflation measured by the wholesale price index (WPI) had reached double digits for 18 straight months. While still above the optimum 4% scenario, retail inflation in India is currently over the RBI’s 2–6% comfort range in September. Retail inflation in September was 5.02 percent. With the exception of the most recent pauses, the RBI has increased the repo rate by a total of 250 basis points since May 2022 in an effort to combat inflation. An weapon of monetary policy that normally works to reduce demand in the economy and lower inflation is raising interest rates.
