India’s Wholesale Price Index-based inflation touched a six-month high of -0.26% in September, government data released on Monday showed.
The wholesale inflation has remained in the negative for six consecutive months. It stood at -0.52% in August and was at 10.55% in September last year. The deflation has been attributed to a fall in prices of chemical and chemical products, mineral oils, textiles, basic metals and food products.
Food inflation rested at 3.35% in September as compared to 10.6% in the same month last year. This fall was led by a reduction in vegetable prices of -15% and in meat, egg and fish prices of -2.86%.
Data showed that fuel prices also reduced by -3.35% on the back of liquefied petroleum gas prices that contracted by -17.11% and high-speed diesel prices that saw a fall of -11.02%. However, petrol prices rose by 1.24%.
When it comes to manufactured products, inflation reduced by -1.34% in September. The drop was mainly due to a reduction in vegetable and animal oil prices by -17.22%, paper by -9.99% and textiles by -7.13%.
This comes days after the release of the retail inflation data, which showed that consumer price inflation was at 5.02% in September due to a decline in vegetable prices.
The price rise indicator was 6.83% in August and 7.44% in July. The Reserve Bank of India is tasked with keeping inflation at 4%, with a tolerance band between 2% and 6%.
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