In September, the index fell a provisional 4.54 per cent.
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Even as consumer price inflation surged for the third straight month and wholesale inflation remained in deflation territory for the 12th straight month, pulse prices have failed to offer any sign of encouragement.
Food prices in October, however, rose 2.44% year-on-year. The overall food inflation this fiscal, meanwhile, has come down to 4.1 percent from 7.6 percent in the same period last fiscal.
On a monthly basis, wholesale prices edged up 0.1 percent in October.
Inflation in pulses stood at 52.98 per cent, and in onions at 85.66 per cent in October. The downfall was attributed to lower price of iron ore (10%), zinc concentrate (6%), crude petroleum (5%) and manganese ore (1%).
However, inflation rate in case of potato was in the negative zone, (-)58.95 per cent. Inflation rate in fuel and power segment was (-)16.32 per cent, while that in manufactured products was (-)1.67 per cent in September. 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.
“Today’s WPI reading suggests that inflation prints continue to benefit from the deflationary trend in the global commodity cycle on account of weak demand and supply glut along with the government’s continued efforts at managing food economy”, economist at Yes Bank Garima Kapoor said.
The WPI data is one of the key factors that affect the Reserve Bank of India’s decision on monetary policy. India’s GDP growth is likely to be higher than 7.5 per cent in FY16 as compared with 7.3 per cent in FY15.
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RBI has cut rates thrice by a total 125 bps in 2015 as inflation slowed.
