Oct’s wholesale inflation hits 3 year low

Data released by the Commerce and Industry Ministry on Thursday showed that India’s wholesale inflation eased to 0.16% in October, its lowest in more than three years. This is said to be its lowest in more than three years and has been attributed to a fall in prices of fuel and manufactured goods. The findings also revealed that inflation for manufactured items stood at -0.84% in October, against -0.42% in September; while that for fuel and power stood at -8.27% last month against -7.05% in September. Thanks to the soaring food prices, however, food inflation increased to 9.8% in October f1rom 7.47% in the previous month. 

“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 2019, believed Aditi Nayar, principal economist at ratings agency ICRA.