New Delhi,dec 15
Reacting to the latest data on the Wholesale Price Index (WPI) inflation leading Economists said it had narrowed faster than expected reflecting the base effect, weakening INR and rising prices of some commodities.As per the data released by the Ministry of Commerce and Industry, the WPI inflation in November rose to -0.32% against -1.21% in October.The decrease was primarily driven by decrease in prices of food articles, mineral oils, crude petroleum and natural gas, the manufacture of basic metals and electricity.Aditi Nayar, Chief Economist, ICRA Ltd expects the WPI to move into a YoY inflation of around 0.5% in December 2025, and subsequently average above 1.5% in Q4 FY2026.”With the further depreciation in the INR, hardening commodity prices, and unseasonal rise in vegetable prices, and despite softening crude oil, we expect the WPI to move into a YoY inflation of around 0.5% in December 2025, and subsequently average above 1.5% in Q4 FY2026,” she said.”This will aid in a slight normalization in the GDP deflator going ahead. The WPI is now likely to average around 0.4% in FY2026.”Sonal Badhan, Economist at Bank of Baroda, said, “Within food, vegetable, fruits and spices helped drag the index down, while milk inflation increased. Food grain inflation remains muted, led by pulses. Amongst cereals, wheat prices fell more steeply in Nov’25, and paddy price index also cooled.””Under manufactured products, softness in inflation was driven by items like basic metals, computers/electronics, chemicals/leather products, food and beverages–continuing to reflect the impact of GST rate cuts and weak international commodity prices,” she added.
