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India’s wholesale prices slip into deflation at −1.21% in October
Wholesale price inflation in India fell to −1.21% year-on-year in October, the lowest in 27 months, as food prices dropped by 5% and fuel & power declined 2.55%. Manufactured goods inflation slowed to 1.54%. Analysts say this deep deflation in WPI presents relief for input costs and corporate margins, yet warns that sustained deflation may weaken rural incomes and consumption.
The sharp drop highlights the base-effect impact and labour cost pressures; markets are already factoring potential rate easing by the central bank amid weak wholesale price signals.
neutral
India’s wholesale prices slip into deflation at −1.21% in October
Wholesale price inflation in India fell to −1.21% year-on-year in October, the lowest in 27 months, as food prices dropped by 5% and fuel & power declined 2.55%. Manufactured goods inflation slowed to 1.54%. Analysts say this deep deflation in WPI presents relief for input costs and corporate margins, yet warns that sustained deflation may weaken rural incomes and consumption.
The sharp drop highlights the base-effect impact and labour cost pressures; markets are already factoring potential rate easing by the central bank amid weak wholesale price signals.
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India’s wholesale inflation entered deflation at −1.21% in October, driven by sharp food and fuel price falls, raising both relief and demand-risk concerns.
Wholesale price inflation in India fell to −1.21% year-on-year in October, the lowest in 27 months, as food prices dropped by 5% and fuel & power declined 2.55%. Manufactured goods inflation slowed to 1.54%. Analysts say this deep deflation in WPI presents relief for input costs and corporate margins, yet warns that sustained deflation may weaken rural incomes and consumption.
The sharp drop highlights the base-effect impact and labour cost pressures; markets are already factoring potential rate easing by the central bank amid weak wholesale price signals.
Wholesale price inflation in India fell to −1.21% year-on-year in October, the lowest in 27 months, as food prices dropped by 5% and fuel & power declined 2.55%. Manufactured goods inflation slowed to 1.54%. Analysts say this deep deflation in WPI presents relief for input costs and corporate margins, yet warns that sustained deflation may weaken rural incomes and consumption.
The sharp drop highlights the base-effect impact and labour cost pressures; markets are already factoring potential rate easing by the central bank amid weak wholesale price signals.
Tags:
WPI
deflation
WPI
deflation
India economy
wholesale prices