India’s wholesale price index (WPI) based inflation contracted for the sixth consecutive month in September 2023. Even though it touched a six-month high of -0.26 percent, it still remained in negative territory as per the data released by the Union Ministry of Commerce and Industry on 16 Oct 2023.
The annual rate of inflation based on all India Wholesale Price Index (WPI) number is -0.26% (Provisional) for the month of September 2023 (over Sept 2022) against -0.52 percent recorded in August 2023. Deflation in September 2023 is primarily due to fall in prices of Chemical & chemical products, mineral oils, textiles, basic metals and food products as compared to the corresponding month of previous year.
The month-on-month change in WPI for the month of September 2023 stood at -0.59 percent as compared to August 2023.
Month-on-Month Change in Major Groups of WPI
Primary Articles (Weight 22.62 percent): The Index for this major group declined by 3.80 percent to 182.4 (provisional) in September, 2023 from 189.6 (provisional) in August, 2023. Prices of Crude Petroleum & Natural Gas (10.31 percent) and Non-food Articles (0.86 percent) increased in September 2023 as compared to August 2023. Prices of Minerals (-4.92 percent) and Food Articles (-6.46 percent) declined in September 2023 as compared to August 2023.
Fuel & Power (Weight 13.15 percent): The Index for this major group increased by 2.34 percent to 153.1 (provisional) in September 2023 from 149.6 (provisional) in August 2023. Prices of Mineral Oils (3.67 percent) and Electricity (0.51 percent) increased in September 2023 as compared to August 2023. Prices of Coal (-0.65 percent) declined in September 2023 as compared to August 2023.
Manufactured Products (Weight 64.23 percent): The Index for this major group increased by 0.36 percent to 140.3 (provisional) in September 2023 from 139.8 (provisional) in August 2023. Out of the 22 NIC two-digit groups for manufactured products, 14 groups witnessed an increase in prices whereas eight groups witnessed decrease in prices. The month-over-month increase in price is mainly contributed by Basic Metals, other Transport Equipment, Fabricated Metal products, Machinery & Equipment, Rubber & Plastic products, etc. Some of the groups that witnessed a decrease in prices in September 2023 as compared to August 2023 are Food products, Motor Vehicles, Trailers & semi-trailers, Electrical equipment, Leather & related products, Chemical & Chemical products.
WPI Food Index (Weight 24.38 percent): The Food Index consisting of Food Articles from Primary Articles group and Food Product from Manufactured Products group has decreased from 186.1 in August 2023 to 177.8 in September 2023. The Year-on-Year rate of inflation based on WPI Food Index decreased from 5.62 percent in August 2023 as compared to 1.54 percent in September 2023.
For the month of July 2023, the final Wholesale Price Index and inflation rate for All Commodities (Base: 2011-12=100) stood at 152.1 and -1.23 percent respectively.
