Will Wholesale Inflation Stay Benign in the Coming Months?
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Synopsis
Wholesale inflation is on a downward trend, thanks to favorable food supply and government intervention. Experts predict stability in prices, making it a significant topic for consumers and investors alike. Discover how these factors play a role in shaping the economic landscape.
Key Takeaways
- Wholesale inflation is staying low due to favorable food supply.
- Government measures are effectively controlling inflation.
- Food prices decreased by 1.38 percent in September.
- Fuel inflation remained negative at (-) 2.58 percent.
- Manufactured goods are still facing price pressures.
New Delhi, Oct 14 (NationPress) Wholesale inflation is anticipated to stay mild in the near future, thanks to ample food supplies, steady global commodity prices, and effective government strategies targeting inflation in crucial sectors, according to PHDCCI CEO & Secretary General, Ranjeet Mehta, on Tuesday.
The kharif crop harvest and the expected influx of rabi produce in the forthcoming quarter are projected to keep food inflation in check, Mehta noted, referencing the official WPI statistics released on that day as per a PHDCCI announcement.
India’s yearly inflation rate, measured by the Wholesale Price Index (WPI), fell to 0.13 percent in September, down from 0.52 percent in August, as per data from the Ministry of Commerce and Industry.
PHDCCI President Rajeev Juneja stated that food prices decreased by 1.38 percent during the month due to increased crop yields and sufficient buffer stocks of wheat and rice. Fuel inflation remained negative at (-) 2.58 percent in September.
The overall low inflation in September was largely influenced by declines in food and primary article prices, even as prices for manufactured goods experienced a slight rise.
Juneja emphasized that the drop in wholesale prices was primarily due to reduced food and energy costs, a robust agricultural output, and stable global commodity pricing. Enhanced supply-side conditions following a favorable monsoon, coupled with government measures to regulate retail prices of essential goods, also played a role in the decline.
Nonetheless, the manufactured goods sector continued to observe moderate price increases owing to high input costs, particularly for raw materials such as metals and chemicals, along with stable domestic demand in industries like cement, steel, and consumer durables, he explained.
Simultaneously, the country’s inflation rate based on the consumer price index (CPI) dropped to a remarkable 1.54 percent in September this year, marking an over eight-year low, compared to the same month last year, as food and fuel prices saw reductions.
Point of View
It's crucial to recognize that the current trends in wholesale inflation reflect a blend of favorable agricultural yields and strategic government interventions. These factors not only impact the economy but also the everyday lives of citizens. It's essential to stay informed and engaged with these developments as they unfold.
NationPress
14/10/2025
Frequently Asked Questions
What is the current wholesale inflation rate?
The wholesale inflation rate in India dropped to 0.13 percent in September from 0.52 percent in August.
How does food supply affect inflation?
Ample food supply helps to keep food inflation in check, contributing to overall lower inflation rates.
What role does the government play in controlling inflation?
The government implements strategies to regulate retail prices of essential commodities, which can significantly influence inflation.
Why are manufactured goods still seeing price increases?
Manufactured goods are experiencing moderate price rises due to elevated input costs, particularly in raw materials such as metals and chemicals.
What are the implications of low inflation rates?
Lower inflation rates can lead to enhanced purchasing power for consumers and stability in economic growth.
