India's WPI Inflation Negative for 2nd Month at -0.32% in Nov

• Wholesale Price Index (WPI) inflation remained negative for the second consecutive month in November at (-) 0.32 percent.
• The negative WPI was primarily due to decreased prices in food articles, mineral oils, crude petroleum & natural gas, basic metals, and electricity.
• Food articles experienced deflation for eight months, narrowing to 4.16 percent in November from 8.31 percent in October.
• Low inflation has allowed the Reserve Bank of India (RBI) to cut policy interest rates by 1.25 percentage points.
• RBI lowered its inflation projection for the current fiscal to 2 percent and raised the FY26 GDP growth projection to 7.3 percent.

Why It Matters: Negative WPI inflation gives RBI room for interest rate cuts, impacting borrowing costs.