Wholesale inflation eases to 5.85% in October

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Wholesale inflation eases to 5.85% in October

India's wholesale inflation rate eased to 5.85% in October from 8.39% in September, according to data released by the Ministry of Commerce and Industry. The fall in wholesale inflation was mainly driven by a decline in fuel prices.

Factors Contributing to Easing Wholesale Inflation


The decline in fuel prices was due to a fall in global crude oil prices. The price of Brent crude oil, the global benchmark, fell from over $100 per barrel in June to around $90 per barrel in October.

The fall in fuel prices led to a decline in the prices of other commodities, such as base metals and chemicals. This, in turn, helped to ease wholesale inflation.

Impact on Manufacturing and Agriculture


The easing of wholesale inflation is a positive development for the Indian economy. It will help to reduce input costs for manufacturing and agriculture sectors, which will boost profitability and investment.

Food Prices


Food prices also remained subdued in October, with the Wholesale Price Index (WPI) for food articles rising by just 0.49%. This was due to a favorable harvest and good availability of food grains.




Conclusion


The easing of wholesale inflation is a welcome relief for the Indian economy. It will help to reduce inflationary pressures and support economic growth.



Links to Credible Sources:

Ministry of Commerce and Industry website: https://commerce.gov.in/: https://commerce.gov.in/
Reserve Bank of India (RBI) website: https://www.rbi.org.in/: https://www.rbi.org.in/

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