India’s Wholesale Price Index Falls in September
Wholesale Price Index Declines
India’s wholesale price index fell by 0.26% in September compared to the previous year, as per the latest government data. Economists had anticipated a 0.5% increase for the month, but the index dropped by 0.52% in August.
Price Movements in Different Sectors
In September, fuel and power prices decreased by 3.35% compared to the same period last year, while primary articles witnessed a 3.70% increase. Food prices rose by 1.54% year-on-year, and manufactured product prices fell by 1.34%.
Lower Retail Inflation
Last week, it was reported that India’s retail inflation had reached a three-month low in September, primarily driven by reduced vegetable prices. However, the inflation rate remained above 4%, which is the target set by the country’s central bank for considering rate cuts.
Reserve Bank of India’s Stance
The Reserve Bank of India (RBI) recently announced that it would maintain its key lending rate for the fourth consecutive policy meeting. The central bank emphasized the importance of achieving an inflation rate of 4% and stated that a rate below 6% might not be sufficient to warrant a reduction in interest rates.
Overall, India’s wholesale price index decline in September reflects the changing dynamics of the country’s economy. While certain sectors experience price drops, others witness moderate growth. The RBI’s cautious approach towards rate cuts indicates its commitment to ensuring stable inflation levels.
