Inflation declines to -3.81% in October from -4.54% in September
The Dollar Business Bureau The annual rate of inflation based on the wholesale price index (WPI) for October has reduced to -3.81% as against -4.54% recorded in September and 1.66% during the same month of last fiscal, according to the government data released on Monday. “The official Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) for the month of October, 2015 rose by 0.1% to 176.7 (provisional) from 176.6 (provisional) for the previous month,” the government said in a statement. The wholesale price index has been witnessing downfall for the past 12 months in the wake of the slowdown in commodity prices in the international market. So far, the build-up inflation rate in the current financial year has been recorded at 0.34% which is less than 1.89% registered in the corresponding period of the previous year. Overall, the index of primary articles remained unchanged at its previous month level of 252.4. However, the index of food articles went up 0.3% due to increase in prices of pulses and other commodities. At the same time, the price of poultry chicken (8%), beef & buffalo meat and fish-marine (4% each), maize (2%) and coffee and fish-inland (1% each) declined. “The index for non-food articles group rose by 0.2% to 220.7 (provisional) from 220.2 (provisional) for the previous month due to higher price of soyabean (14%), raw jute (8%), cotton seed (6%), rape & mustard seed and flowers (4% each) and raw rubber and fodder (2% each),” the government data said. The index for minerals group witnessed a decline of 5.0% and reached the level of 222.5 from 234.1 in the previous month. The downfall was attributed to lower price of iron ore (10%), zinc concentrate (6%), crude petroleum (5%) and manganese ore (1%). The index of major groups like fuel and power increased by 0.5% to 176.4 from 175.6 in the previous month due to higher price of aviation turbine fuel (7%) and high speed diesel (1%). However, the price of bitumen (7%), furnace oil (2%) and LPG (1%) declined. The wholesale prices of manufactured products remained stable at its previous month's level of 153.3. The WPI data is one of the key factors that affect the Reserve Bank of India’s decision on monetary policy. In its earlier bi-monthly policy review, the central bank had reduced the key interest rate by 50 basis points. The next policy review is scheduled to be held in December
November 16, 2015 |2:46pm IST.