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Below the Perspective on the WPI Data by Ms. Rajani Sinha, Chief Economist, CareEdge Ratings 

“Wholesale prices remained in deflation in November, declining by 0.3%. However, the extent of deflation narrowed compared to the previous month due to a seasonal increase in prices of select food items. While food prices continued to remain in deflation, elevated edible oil inflation limited further easing in overall food inflation. This remains a key area to monitor amid weak kharif oilseed sowing and elevated global prices of edible oils. Additionally, the government’s decision to impose a 30% import duty on certain pulses is expected to lend support to prices in the segment.

On the external front, global commodity prices are expected to remain broadly benign, supported by oversupply in the global crude oil market and excess capacity in China. However, several base metals, including copper, tin, and aluminium, along with precious metals such as gold and silver, have witnessed sharp price increases. These gains have been driven by strong industrial demand from the renewable energy and AI sectors, US Federal Reserve rate cuts, and expectations of fiscal stimulus in China. Movements in global base metal prices remain a key monitorable. Overall, WPI inflation appears to have bottomed out in October and is expected to remain largely flat over FY26.”

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