Deflation Softens But Stays in Play
Wholesale prices in India are still cheaper than last year, but the gap is closing fast—thanks to everyday food items costing less at bulk level. The India Wholesale Inflation November figures released on Monday show the trend easing, even as retail baskets feel a slight pinch.
New Delhi: Step into any mandi or wholesale yard today, and traders are talking about the same thing—the latest numbers from the Commerce Ministry. India Wholesale Inflation November came in at -0.32% year-on-year, an improvement from October’s deeper -1.21% dip. Released on December 15, the provisional Wholesale Price Index data points to softer prices in food, fuel and metals pulling the headline lower, though month-on-month the index actually rose 0.71%.
From chats with suppliers in Azadpur Mandi and industry folks in Mumbai, the story is clear: Last year’s high base is fading, and sequential costs are creeping up on vegetables and pulses. “Onions and potatoes are moving faster now, but bulk buyers are still getting good deals compared to 2024,” one old-timer loader shared while stacking crates.
Breakdown of India Wholesale Inflation November Components
Primary Articles (weight 22.62%): Deflation narrowed to -2.93% from -6.18% in October—food articles led the bounce.
Food Index: Improved to -2.60% YoY from -5.04%, with the index rising from 192.0 to 195.0 month-on-month.
Fuel & Power (13.15% weight): Mild easing to -2.27% from -2.55%.
Manufactured Products (64.23% weight): Inflation cooled to 1.33% from 1.54%—factory gate prices staying tame on metals and chemicals.
The big three buckets tell the tale: Food-driven primary goods pulled overall deflation higher (less negative), while energy and core manufacturing kept lids on rises.
Retail Side: CPI Inches Up to 0.71%
Just days earlier on December 12, retail inflation data showed a small uptick to 0.71% from October’s record-low 0.25%. Vegetables, eggs, meat-fish, spices and fuel-light pushed household bills higher, even as overall food stayed in mild deflation.
How WPI Hits the Common Man—and Why It Matters
Wholesale rates staying low for long spells good for factories—lower input costs mean steady production without immediate price hikes downstream. But if they climb too sharp, producers pass it on, hitting kitchen budgets. Government steps in with taxes—like past excise cuts on fuel—to cushion blows, though there’s a limit.
WPI leans heavy on manufactured goods (over 64%), metals, chemicals and rubber—stuff factories buy bulk. Retail CPI, watched closer by RBI for policy, packs more food (around 46%) and housing.
Two ways we measure price rise: One for bulk trades (WPI), one for shop shelves (CPI). Both tell parts of the same story.
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