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Wholesale Price Index (WPI)-based inflation for October 2019 came in at 0.16 per cent, much lower than 5.54 per cent recorded in the same month last year. It was also lower than 0.33 per cent recorded in September 2019, official data released on Thursday showed.
Meanwhile, the WPI for August 2019 has now been revised upward to 1.17 per cent from 1.08 per cent earlier. Manufactured products (weightage of 65 per cent) inflation for the month of October 2019 contracted 0.84 per cent (4.57 per cent growth).Primary articles inflation during October 2019 stood at 6.41 per cent (2.46 per cent).
Food articles inflation spiked to 9.80 per cent in October 2019 as compared to contraction of 1.42 per cent in same month last year.
On Wednesday, the Consumer Price Index (CPI) based inflation for October 2019 came at 16 month high of 4.62 per cent, on higher food prices.
Expert take
Commenting on the WPI number for October 2019, Aditi Nayar, Vice President and Principal Economist, ICRA said that the fall in the WPI inflation in October 2019 was narrower than what ICRA expected, as a jump in food inflation to nearly 10 per cent, offset the further weakness in the core WPI.
The further deepening of the disinflation of core-WPI items is along expected lines, underscoring the subdued demand conditions in the economy, and supporting the case for further monetary easing in December, she added.
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