Negative Inflation Marks October 2023 WPI: A Detailed Analysis
TFP Bureau, New Delhi; Nov 14, 2023: The annual rate of inflation in India, as measured by the Wholesale Price Index (WPI), has taken a dip, registering (-) 0.52% (Provisional) for October 2023 over the same month in the previous year. This represents a further decline from the (-) 0.26% recorded in September 2023. The negative inflation rate for October is primarily attributed to a decrease in prices across various sectors, including chemicals, electricity, textiles, basic metals, food products, paper, and paper products.
Key Highlights:
1. Overall WPI Trends:
- All Commodities Index: The WPI for all commodities stood at 152.1, reflecting a 0.40% increase month-over-month.
- Primary Articles (22.62% weight): The index increased by 1.15% to 184.5, with notable increases in prices of minerals (7.81%) and food articles (1.33%).
2. Fuel & Power:
- The Fuel & Power index rose by 0.65% to 154.1, driven by increased prices of mineral oils (1.28%) but offset by a decline in electricity prices (-0.73%).
3. Manufactured Products:
- The Manufactured Products index remained constant at 140.3. Of the 22 NIC two-digit groups, 13 saw price increases, while 7 experienced decreases. Notable increases were observed in food products, chemicals, textiles, and other non-metallic mineral products.
4. Food Index:
- The Food Index, comprising food articles from the Primary Articles group and food products from the Manufactured Products group, increased from 177.8 in September to 179.6 in October. The annual inflation rate for the WPI Food Index stood at 1.07% in October compared to 1.54% in September.
5. Inflation Trends:
- Month-over-Month Change (Oct 2023): The WPI index increased by 0.40%, showcasing a mixed trend in different sectors.
- Last Six Months Inflation Figures: The WPI-based inflation figures over the last six months highlight a persistent negative trend, with October marking a low point at (-) 0.52%.
Final Index for August 2023:
For the month of August 2023, the final Wholesale Price Index and inflation rate for ‘All Commodities’ stood at 152.5 and -0.46%, respectively.
Response Rate and Next Release:
The WPI for October 2023 was compiled at a weighted response rate of 85.9%. However, it’s essential to note that provisional figures are subject to revision based on the final revision policy of WPI. The next WPI release is scheduled for December 14, 2023.
Conclusion:
The negative inflation in October 2023 suggests a complex economic scenario marked by fluctuating prices across various sectors. As the nation navigates these economic nuances, it remains crucial to monitor inflation trends for a comprehensive understanding of the market dynamics.
Note: All figures are provisional and subject to revision.
For more details, refer to the official press release.
