India's Wholesale Price inflation records contraction in October 2023

India's Wholesale Price Index (WPI) for October 2023 indicates an annual rate of inflation at -0.52 per cent, marking a decline from the -0.26 per cent recorded in September 2023. The negative inflation rate is attributed to notable decreases in prices across various sectors, including chemicals, electricity, textiles, basic metals, food products, paper, and paper products when compared to the same period in the previous year.

The month-over-month change in the WPI index for October 2023 stands at 0.40 per cent, signaling a modest increase compared to September 2023.

Breaking down the major groups within the WPI

Primary Articles (Weight 22.62 per cent)

• The index for this category increased by 1.15 per cent, reaching 184.5 (provisional) in October 2023 from 182.4 in September 2023.
• Prices of Minerals (7.81 per cent) and Food Articles (1.33 per cent) experienced an uptick, while prices of Crude Petroleum & Natural Gas (-0.60 per cent) and Non-food Articles (-0.24 per cent) declined.

Fuel & Power (Weight 13.15 per cent)

• The index for this major group increased by 0.65 per cent, reaching 154.1 (provisional) in October 2023 from 153.1 in September 2023.
• Prices of Mineral Oils (1.28 per cent) increased, whereas Electricity (-0.73 per cent) witnessed a decline.

Manufactured Products (Weight 64.23 per cent)

• The index for this major group remained constant at 140.3 (provisional) in both October and September 2023.
• Among the 22 NIC two-digit groups, 13 experienced a price increase, 7 witnessed a decrease, and 2 remained unchanged.
• Noteworthy increases were observed in the manufacture of food products, chemicals, and chemical products, among others.

WPI Food Index (Weight 24.38 per cent)

• The Food Index, encompassing 'Food Articles' and 'Food Products,' rose from 177.8 in September 2023 to 179.6 in October 2023.
• The annual rate of inflation based on the WPI Food Index stood at 1.07 per cent in October 2023, down from 1.54 per cent in September 2023.