September WPI inflation rises to -0.26%, negative for 6th consecutive month

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consecutive month, since April 2023, that WPI data has seen negative trend. WPI inflation in July was at -1.36 percent. Year-on-year (YoY), WPI-based inflation stood at 10.55 percent in September 2022.

Track our cost of living LIVE updates here Food index for the month of September stood at 1.54 percent, compared to 5.62 percent in August; while WPI for primary articles is at 3.7 percent in September, against 6.34 percent in August; and fuel and power inflation for September is at -3.35 percent, compared to -6.03 percent in August. India's retail inflation data, released on October 12 showed notable decline in September, dropping to a three-month low. After reaching its peak level in the past 15 months, the Consumer Price Index (CPI) experienced a cooling effect, mainly attributed to lower vegetable prices.

The September inflation figure of 5.02 percent is notably lower than the 6.83 percent recorded in August, according to government data. This dip brings the inflation rate below the upper tolerance band of 2-6 percent set by the RBI. Despite a positive reduction in inflation, the Consumer Price Index (CPI) in the country has persisted above the 4 percent mark, a target indicated by the central bank as crucial before considering rate adjustments.

Notably, food inflation, a significant component of the consumer price basket, also saw a decrease last month, registering a rise of 6.56 percent in September compared to 9.94 percent in August. In September, vegetable inflation showed a notable easing, dropping to 3.39 percent from 26.14 percent in the previous month. Additionally, cereal inflation in September decreased to 10.95 percent from 11.85 percent in August, with wheat exports being banned since the previous