India is set to reap a record food grains production and their inflation outlook remains stable.
The upcoming festival season of Durga Puja and Diwali, may spark a rise in the economy to bring further prosperity. The inflation, based on Wholesale Price Index (WPI) for the past six months, between January and June, 2017 clearly shows that there has been a sharp drop in the pace of price rise , not only in the headline number to below one per cent but also in several individual items of interest to the common household. Besides, the inflation for the manufactured products, more so for the manufactured food products, has seen a significant decline in the past six months.
The headline WPI inflation has dropped in the past six months from 4.26 per cent in January 2017 to 0.90 in June this year. For the manufactured products, it has decreased from 3.37 per cent to 2.27 per cent, while for the manufactured food products, the figure has dropped from 10.73 per cent to 3.09 per cent on the annualised basis.
The biggest contributors to a sharp fall in inflation are the vegetable prices which have dropped by over 21 per cent in June 2017 year-on-year.