Looking ahead, while global commodity prices, including crude oil continued to soften in the ongoing month, the uptrend in domestic prices of most food items as well as an unfavourable base is projected to lead to a turnaround in the WPI to a marginal 0.1% inflation in November 2023
FinTech BizNews Service
Mumbai, November 13, 2023: Aditi Nayar, Chief Economist, Head - Research & Outreach, ICRA Ltd, has a special perspective to share on the WPI inflation: "As expected, the WPI deflation widened slightly to 0.5% in October 2023 from 0.3% in September 2023 in year-on-year (YoY) terms. This was led by a sharp turnaround in the crude petroleum and natural gas print to a deflation, and a softening in the inflation for primary food articles, mainly vegetables. Looking ahead, while global commodity prices, including crude oil continued to soften in the ongoing month, the uptrend in domestic prices of most food items as well as an unfavourable base is projected to lead to a turnaround in the WPI to a marginal 0.1% inflation in November 2023 (+6.1% in November 2022), after a gap of seven months. Thereafter, ICRA estimates the WPI inflation prints to remain below 3.0% in the remaining months of FY2024, amid expectations that commodity prices will remain at benign levels unless global demand outlook strengthens significantly."
