New Delhi, Nov 14 (IANS) After India’s WPI data for October showed deflation, industry bodies on Friday forecast WPI inflation to remain range-bound mainly due to benign international crude oil prices.

“We expect WPI inflation to remain range-bound due to benign international crude oil prices, comfortable buffer stocks of food-grains and healthy kharif harvest,” said Dr Ranjeet Mehta, CEO & Secretary General, PHD Chamber of Commerce and Industry (PHDCCI).

State-owned Bank of Baroda forecasted that international commodity prices and oil prices may see some inching up if there is a revival in demand seen following the re-opening of the US government after a 43-day-long shutdown.

Higher than expected surplus in global supplies may also exert downward pressure on oil prices going forward, the bank said, adding that it may exert upward pressure on fuel inflation in the coming months.

The Wholesale Price Inflation (WPI) fell into deflation territory at (-) 1 .21 per cent in October, driven by a drop in prices of food, fuel and manufactured items, government data showed on Friday.

WPI-based inflation was 0.1 per cent in September and 2.8 per cent in October 2024.

The drop was primarily due to a decrease in prices of food articles, crude petroleum and natural gas, electricity, mineral oils, and the manufacture of basic metals, among others, PHDCCI President Rajeev Juneja said.

Core WPI inflation — excluding food, fuel and power — inched up to 1.5 per cent from 0.3 per cent a year earlier, reflecting higher basic metal and aluminium prices even as items such as computers, motor vehicles and food and beverages softened, possibly after GST rate cuts.

“Core inflation also inched higher to 1.5 per cent in October from 0.3 per cent in the previous year. Within food, vegetables, fruits, and spices helped drag the index down, while protein (eggs, meat and fish) and milk inflation increased,” the bank noted.

–IANS

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