WPI inflation falls to 27-month low of (-)1.21 pc in Oct, Pg 25

Key Highlights:

• WPI inflation decreased to (-)1.21% in October, a 27-month low.
• The decline is attributed to deflation in food items.
• Lower prices of fuel and manufactured items also contributed.

Detailed Insights:

• The WPI measures the change in prices of goods at the wholesale level.
• The negative WPI indicates a decrease in the general price level.
• Deflation in food prices can impact farmers' income and agricultural production.

Key Concepts Involved:

• Inflation: The rate at which the general level of prices for goods and services is rising.
• Deflation: A decrease in the general price level of goods and services.
• Wholesale Price Index (WPI): An index that tracks the changes in prices of goods at the wholesale level.