New Delhi, November 14 (IANS). The industry body reacted to negative wholesale inflation data in October and said that due to low international crude oil prices, wholesale inflation may remain in a limited range in the coming time.
Dr Ranjit Mehta, CEO and General Secretary, PHD Chamber of Commerce and Industry (PHDCCI), said, “We expect wholesale inflation to remain in a limited range in the coming period due to weakness in international crude oil prices, adequate buffer stocks of food grains and good Kharif crop.”
Public sector Bank of Baroda has said in its estimates that if demand improves after the US government reopens after 43 days of shutdown, there could be some rise in international commodity prices and oil prices.
The bank said a larger-than-expected surplus in global supply could also put pressure on oil prices going forward. Due to this, fuel inflation may remain low in the coming months.
The wholesale inflation rate or inflation rate in India has come down to -1.21 percent in October, which was 0.13 percent in September. Whereas, in October 2024 it was 2.8 percent.
PHDCCI President Rajiv Juneja said that this decline was mainly due to decline in prices of food items, crude oil and natural gas, electricity, mineral oils and manufacturing of basic metals etc.
The wholesale inflation rate in manufacturing products stood at -0.07 percent in October. Prices fell in seven of its 22 categories, including chemicals, basic metals and motor vehicles. At the same time, prices increased in 11 categories like textiles, food products, electronics and electrical appliances. There was no change in four categories.
The reason for wholesale inflation being in the negative zone in October is the decline in prices of food products, crude oil and natural gas, electricity and mineral oil and others.
The wholesale inflation rate in food products last month was -5.04 percent, which was -1.99 percent in September. This shows that prices of bulk products have decreased compared to last year.
-IANS
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