India's Wholesale Price Index, WPI in September fell 0.26 per cent from a year earlier, according to government data released on Monday. The WPI rate remained in the negative territory for the sixth straight month on easing prices of food articles. As per the government's data released earlier, the WPI-based inflation rate has been in the negative since April and was (-)0.52 per cent in August. In September last year, it was 10.55 per cent.

Inflation in food articles eased to 3.35 per cent in September, after remaining in double digits in the previous two months. It was 10.60 per cent in August. This month, the fuel and power prices fell 3.35 per cent from a year earlier, compared with a 6.03 per cent drop in August.

"Deflation in September 2023 is primarily due to fall in prices of chemical & chemical products, mineral oils, textiles, basic metals and food products as compared to the corresponding month of the previous year," the commerce and industry ministry said on Monday.

Fuel and power basket inflation was at (-)3.35 per cent in September, against (-)6.03 per cent in August. In manufactured products, inflation rate was (-)1.34 per cent, as against (-)2.37 per cent in August.

Data released last week showed that the annual retail or consumer price inflation was at 5.02 per cent in September, a 3-month low level.
Earlier this month, the Reserve Bank of India (RBI) kept its key lending rate steady for a fourth consecutive policy meeting and reiterated that it was targeting inflation of 4 per cent and a print of below 6 per cent.

The government releases index numbers of wholesale prices on a monthly basis on the 14th of every month (or the next working day). The index numbers are compiled with data received from institutional sources and selected manufacturing units across the country.Overall wholesale inflation was 8.39 per cent in October 2022 and has fallen since then. Notably, the wholesale price index (WPI)--based inflation had been in double digits for 18 months in a row till September last year.

(With Agency Inputs)