What India’s October WPI Data Reveals About Inflation Trends
India’s Wholesale Price Index (WPI) for October presents a mixed but important inflation picture for policymakers, businesses, and market participants. Deflation continues in key categories such as primary articles, food, fuel, and power, while manufactured products show stable but moderate inflation. Below is a structured breakdown of the latest numbers and what they imply for broader economic sentiment.
Headline WPI Inflation
WPI inflation came in at –1.21% for October compared with 0.13% previously. This deepening deflation reflects broad price cooling across commodities and energy-linked products. It also signals reduced cost pressures for manufacturers heading into the next quarter.
Primary Articles & Food Trends
Primary articles inflation registered –6.18% month-on-month versus –3.20% earlier. This indicates significant price softening across minerals, crude, and agricultural raw materials.
Food inflation stood at –5.04% versus –1.99% month-on-month, while the broader food index was flat. This suggests that while food categories remain under pressure, stabilisation is beginning at the margin.
Fuel & Power Index Movement
Fuel and power inflation came in at –2.55% versus –2.58% month-on-month. Although it remains in negative territory, the slight improvement hints at some stabilisation in energy markets.
The fuel and power group index rose 1.1% month-on-month, reflecting a modest uptick in certain sub-components despite overall deflation at the headline level.
Manufactured Products & Commodity Index Moves
Manufactured products inflation stood at 1.54% compared with 2.33% month-on-month. This moderated pace reflects cooling input prices, which may support improved margins for industrial and consumer-facing companies.
The all-commodities index declined by 0.06% month-on-month, consistent with the broader disinflationary environment.
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Macroeconomic Interpretation
The October WPI data reinforces the narrative of easing wholesale-level inflation. Persistent deflation across primary articles, food, and energy suggests that supply-driven pressures are easing. This gives policymakers room to maintain a supportive stance without immediate inflationary concerns.
Manufactured goods inflation cooling further supports expectations of margin stability for listed companies in Q3 and Q4. Equity markets may interpret this data as favourable from an earnings standpoint, particularly for sectors sensitive to raw material prices.
Investor Takeaway
India’s October WPI print highlights a broad easing across wholesale inflation categories, led by food, fuel, and primary articles. With manufactured product inflation cooling, cost structures for several industries may stabilise heading into FY26. Investors should monitor upcoming CPI prints, global energy price trends, and commentary from FMCG, auto, and industrial companies as these will shape near-term market direction.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
