New Delhi, Oct 14 Wholesale inflation is expected to remain benign in the upcoming months, aided by sufficient food supply, stable global commodity prices, and government measures to control inflation in key sectors, PHDCCI CEO & Secretary General, Ranjeet Mehta, said on Tuesday.
The harvest of kharif crops and the expected arrival of rabi produce in the next quarter are likely to keep food inflation contained, Mehta said on the official WPI data released on Tuesday, a PHDCCI release said.
India's annual rate of inflation based on the Wholesale Price Index (WPI) eased to 0.13 per cent in September from 0.52 per cent in August, according to figures released by the Ministry of Commerce and Industry.
PHDCCI President Rajeev Juneja said that the food prices dropped 1.38 per cent during the month due to higher crop yields and adequate buffer stocks of wheat and rice. Fuel inflation stayed in the negative zone at (-) 2.58 per cent during September.
The low overall inflation in September was primarily driven by declines in food and primary article prices, even as manufactured product prices showed a mild increase.
Juneja said that the moderation in wholesale prices was mainly due to lower food and energy costs, a strong agricultural output, and stable commodity prices globally. Improved supply-side conditions following a good monsoon, alongside government interventions to check retail prices of essential commodities, also contributed to the decline, he added
However, the manufactured goods sector continued to witness moderate price rises due to elevated input costs, particularly for raw materials like metals and chemicals, and steady domestic demand in industrial sectors such as cement, steel, and consumer durables, he said.
Meanwhile, the country's inflation rate based on the consumer price index (CPI) has declined to an over eight-year low of 1.54 per cent in September this year, compared to the same month of the previous year, as prices of food items and fuels turned cheaper during the month.
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