Manufactured goods prices fell 0.07%, with metals, chemicals, and vehicles dropping due to lower input costs, better supply
NEW DELHI
India’s wholesale inflation continued to fall in October, dropping further into negative territory at –1.21 per cent, according to the Ministry of Commerce and Industry. The decline was mainly due to lower prices of food items, crude petroleum, natural gas, electricity, mineral oils, and basic metal products. The month-to-month WPI also slipped slightly by –0.06 per cent, compared to –0.19 per cent in September.
Prices of manufactured goods also softened, with the index falling by –0.07 per cent. Key sectors such as basic metals, metallic mineral products, chemicals, motor vehicles, trailers, and semi-trailers recorded noticeable price drops. Officials said this steady easing reflects weak input costs and improving supply conditions.
The Consumer Price Index (CPI), which measures retail inflation, showed a similar cooling trend. CPI fell to 0.25 per cent in October, helped strongly by GST rate cuts that reduced the prices of many goods and services. The retail inflation rate had already touched an eight-year low of 1.54 per cent in September, and October continued this downward slide.
Food inflation played a major role in easing household pressure. It fell further into the negative zone at –5.02 per cent, compared with –2.28 per cent in September. Food prices have now stayed negative for five straight months. Lower prices of cooking oils, vegetables, fruits, eggs, cereals, footwear, and transport services contributed significantly.
Officials said the full impact of the GST cut, a favourable base effect, and good supply conditions helped cool inflation. With a healthy southwest monsoon, strong kharif sowing, good reservoir levels, and adequate foodgrain stocks, the inflation outlook for 2025–26 appears calmer.
The sustained decline in inflation gives the Reserve Bank of India more space to maintain a softer monetary stance, possibly cutting interest rates to support economic growth.