India’s Wholesale Price Index has fallen compared to last year, giving us the first negative figure in 30 years, with a -1.61% printed. Of course this may be revised, etc.
The longer term trend seems to be intact, so no deflation per se. Food is an inordinately higher weighted component of WPI, and deflating factors like housing aren’t quite well represented (though forming a significant percentage of expenses).
Still, a negative number is helpful in reducing inflationary fears. Now if the slope of the curve were to dip, that would be dangerous.
