StatsGuru: Examining the numbers behind the fall in inflation

Of late, inflation has softened noticeably. As Table 1 shows, Wholesale Price Index (WPI)-based inflation has crashed to its lowest level in considerable time, and the trend is all downward.



And, as Table 2 reveals, even Consumer Price Index (CPI)-based inflation has gone below 6.5 per cent and exhibits a downward trend.



Meanwhile, although manufacturing WPI seemed to have an upward trend, that has been reversed in the last set of numbers, according to Table 3.

Perhaps that is because a nascent recovery in the manufacturing sector in the middle of the year seems to have lost force, as Table 4 demonstrates.



What lies behind this inflation reduction? As Table 5 shows, the decline in international crude oil prices has been particularly sharp.



But even the main driver of inflation, food prices, have seen a slight dip in their rate of increase, as Table 6 shows.



For some major foods, like rice and sugar, the decrease in prices over the past three months has been noticeable, as shown in Table 7.

7: WITH RICE & SUGAR SHOWING A NOTICEABLE FALL | Create Infographics

Compiled by BS Research Bureau

Graphics by Anisha Dutta