India's WPI Inflation Drops To 21-Month Low

India's wholesale price-based inflation eased in November to a 21-month low of 5.85 per cent year-on-year (YoY) as food prices moderated, government data showed on Wednesday. In October, the Whole sale price-based inflation was 8.39%.

Raheel Shah, Director at BDR Pharmaceuticals said, "The WPI inflation print is a pleasant surprise, after several months of high double-digit levels, it has hit a 21-month low of 5.85%. The WPI print is way below most estimates. We have a situation where CPI as well as WPI is below the 6% mark after several months of elevated prices.

The fall in commodity and food prices are the major reasons for the WPI cooling off. This data is also in line with the CPI inflation released earlier this week. The fall in WPI inflation needs to be consistent and durable for the policymakers to take note of it and change their view and soften their stance on it. WPI cooling off will percolate well in terms of ease in the prices of industrial goods."