India’s wholesale price inflation remained in negative territory for a second consecutive month in November, reinforcing expectations of a benign inflation environment, official data released on Monday showed.
Inflation based on the Wholesale Price Index (WPI) stood at (-)0.32 per cent in November, easing from (-)1.21 per cent recorded in October.
The reading also marked a sharp turnaround from 2.16 per cent registered in November last year, according to figures from the Ministry of Commerce and Industry.
The ministry attributed the continued deflationary trend largely to a broad-based fall in prices of food articles, mineral oils, crude petroleum and natural gas, basic metals and electricity.
Declining input costs across these segments helped keep wholesale prices under pressure despite pockets of firm demand.
Retail inflation, measured by the Consumer Price Index (CPI), remained low as well.
CPI inflation was estimated at 0.71 per cent in November, slightly higher than 0.25 per cent in October, data released earlier by the Ministry of Statistics and Programme Implementation showed.
Food prices continued to provide significant relief to consumers. Food inflation under the WPI framework stayed in the negative zone at (-)3.91 per cent in November, marking the sixth consecutive month of contraction.
The sustained decline in food prices has helped ease pressure on household budgets and supported the broader disinflation trend.
The favourable price environment has prompted the Reserve Bank of India to revise its inflation outlook downward.
The central bank recently cut its inflation projection for 2025–26 to 2 per cent from 2.6 per cent estimated earlier, citing a sharp fall in food prices and the impact of recent GST rate cuts.
Reflecting the improved inflation dynamics, RBI Governor Sanjay Malhotra announced a 25-basis-point reduction in the policy repo rate to 5.25 per cent, signalling a shift in focus towards supporting economic growth.
He said easing inflation had created space for monetary policy to prioritise growth impulses.
Malhotra described the current phase as a rare “Goldilocks period” for the Indian economy, pointing to robust GDP growth of 8.2 per cent in the second quarter alongside a sharp moderation in inflation to 1.7 per cent.
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He noted that the Monetary Policy Committee expects headline inflation to remain softer than earlier projections, driven mainly by exceptionally benign food prices.
Core inflation, which excludes food and fuel, has also remained largely contained despite pressure from higher precious metal prices.
Excluding gold, core inflation moderated to 2.6 per cent in October, indicating that the disinflationary trend is becoming more broad-based.
The RBI Governor further said food supply conditions have improved due to higher kharif output, steady progress in rabi sowing, adequate reservoir levels and favourable soil moisture conditions.
He added that, apart from some metals, global commodity prices are expected to ease going forward, supporting the outlook for stable inflation in the months ahead.
