India’s consumer price index (CPI)-based retail inflation dropped to 6.77 per cent in October from 7.41 per cent in September, while the wholesale price index (WPI) fell to a 19-month low, primarily due to subdued rates of food items. The CPI for clothing and footwear rose to 181 in October from 179.9 in September, according to the National Statistics Office (NSO).
While retail inflation is the lowest in three months, wholesale inflation declined for the fifth consecutive month.
The finance ministry said in a series of tweets that the prices of commodities like crude oil, iron ore and steel sobered in global markets. This, coupled with measures taken by the government to rationalise tariff structures of major inputs to augment domestic supply, helped keep cost-push inflation in consumer items under control.
“Further, the Government has taken trade-related measures on wheat and rice to keep domestic supplies steady and curb the rise in prices. The impact of these measures is expected to be felt more significantly in the coming months,” it said.
The WPI data released by the commerce and industry ministry showed that the decline in October inflation is primarily contributed by fall in the price of mineral oils, basic metals, fabricated metal products, except machinery and equipment; textiles; other non-metallic mineral products; and minerals.