India's Wholesale Price Inflation Hits 14-Month Low Amid Easing Food and Fuel Prices

India's Wholesale Price Inflation (WPI) has plummeted to its lowest point in 14 months, standing at 0.39% for May, primarily owing to a decrease in food and fuel prices. The Industry Ministry highlighted this drop as a reflection of falling inflation in food articles, fuel, and power.

In spite of the declining numbers, manufacturing sectors such as food products, chemicals, and other manufacturing saw positive inflation, which may counteract the wider trends. Geopolitical tensions, particularly between Israel and Iran, could potentially reverse the current course of inflation rates.

This dip in WPI is accompanied by a record low retail inflation rate of 2.82%, prompting the Reserve Bank of India to reduce interest rates and adjust its inflation forecasts. The reduction in wholesale inflation is expected to positively impact business sentiment by lowering production costs, according to industry experts.

(With inputs from agencies.)