India Wholesale Prices Fall 0.52%, More Than Forecast

India’s wholesale prices declined for the seventh straight month in October, and at a faster-than-expected rate, data published by the National Statistical Office showed on Tuesday.

The wholesale price index, or WPI, dropped 0.52 percent year-over-year in October, after a 0.26 percent decline in September. Economists had expected a 0.20 percent fall.

The overall downward trend was primarily due to the fall in prices of chemicals and chemical products, electricity, textiles, basic metals, food products, and paper products, the ministry said.

Costs for fuel and power fell 2.47 percent in October from last year, versus a 3.35 percent decrease a month ago. Data showed that prices for manufactured products continued to slide by 1.13 percent.

At the same time, food prices rose 1.07 percent from last year, but the pace of decline eased from 1.54 percent in September. Similarly, prices of primary articles grew at a weaker rate of 1.82 percent.

Data released on Monday showed that India’s consumer price inflation softened to a 4-month low of 4.87 percent in October from 5.02 percent in the prior month.

Further, inflation remained within the central bank’s tolerance band of 2-6 percent for the second straight month.

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