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%.
Buy an annual Scroll Membership to support independent journalism and get special benefits.
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!