Wholesale inflation hits 6 month high in Sept but stays in negative

India's Wholesale Price Index (WPI) inflation reached a six-month high at -0.26% in September, persisting in negative territory for the sixth consecutive month. Food inflation dropped sharply to 3.35%, driven by reduced vegetable and potato prices. Prices of cereals, wheat, pulses, onions, and milk saw an uptick.

Manufactured product prices continued to contract, especially in food, textiles, chemicals, metals, and steel. Fuel prices remained in decline, led by falling LPG and diesel costs, while petrol prices showed a slight increase. Experts anticipate a potential increase in WPI inflation in the latter half of the fiscal year as the high base effect fades.

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