WPI inflation remains in negative territory for second straight month

Wholesale inflation stayed in the negative zone for the second consecutive month in November, weighed down by lower prices of food, metal and energy products, official data released on Monday showed.The annual Wholesale Price Index (WPI) inflation stood at (-)0.32% in November, compared with a 27-month low of (-)1.21% in October, according to data from the Ministry of Commerce and Industry.The ministry said the negative rate of inflation in November was primarily due to a decline in prices of food articles, mineral oils, crude petroleum and natural gas, basic metals and electricity.
Prices of food items were 2.60% lower year-on-year in November, easing from a 5.04% decline in October. Food items have remained in deflation in the wholesale market for the past eight consecutive months and have been in the deflationary zone since April.Inflation in manufactured products softened to 1.33% in November, from 1.54% in the previous month, indicating some moderation in factory-gate price pressures. Meanwhile, primary articles and fuel & power continued to remain in the deflationary zone during the month.
Commenting on the data, Aditi Nayar, chief economist at ICRA, said wholesale inflation narrowed faster than expected. “The WPI deflation narrowed to 0.3% in November 2025 from 1.2% in October 2025, reflecting base effects, a weakening rupee and rising prices of some commodities,” she said.Nayar added that price pressures could re-emerge in the coming months. “With further depreciation in the rupee, hardening commodity prices and an unseasonal rise in vegetable prices, and despite softening crude oil, WPI inflation is expected to move to around 0.5% year-on-year in December 2025, and subsequently average above 1.5% in the fourth quarter of FY2026,” she said.The November data suggests that while wholesale price pressures remain subdued for now, emerging cost-side factors could gradually push inflation back into positive territory in the near term, noted experts.

(Business Correspondent)