GST cut has a major impact, with WPI falling into negative territory.

WPI: India's economy has seen a major turning point, catching everyone's attention. The Wholesale Price Index (WPI) suddenly fell to negative territory in October, surprising even experts. From vegetables to pulses, everyday items are now cheaper than before, but will this relief last long? GST rate cuts and last year's high prices have paved the way for this decline. The biggest question now is: will this falling inflation prompt the RBI to cut interest rates and bring a little more prosperity to people's pockets?

WPI: Significant good news has arrived for those suffering from inflation in the country. The Wholesale Price Index (WPI) not only declined in October but also reached negative territory. This means that the prices of many essential commodities are now falling compared to before. Especially, the prices of everyday essentials like vegetables, pulses, and fuel have been reduced. The latest government data indicates that a period of relief may be beginning in the market, which will ease the burden on ordinary people and provide an opportunity for spending during the festive season.

Why did the WPI fall?

WPI inflation, based on wholesale prices in India, fell to -1.21 percent in October. This means that the prices of goods in the market have decreased compared to earlier. Data released by the government showed that prices of food items, fuel, and various manufactured goods have declined. This may bring some relief to the general public.

Where did prices fall the most?

Significant declines have been recorded in food prices. Pulses, vegetables, onions, and potatoes have seen significant declines, particularly in the prices of vegetables. Vegetables have seen a decline of almost 35 percent, while onion prices have fallen by 65 percent. Pulses have also seen a decline of more than 16 percent. Prices of essential commodities like fuel and electricity also declined, leading to a decline in wholesale prices overall.

Has the GST reduction had an impact?

The government recently reduced GST on many everyday items. Previously, there were four slabs, which were reduced to just two, at 5 percent and 18 percent. This reduced prices at stores and created a recession-like atmosphere in the market. Furthermore, last year's high base also makes this year's inflation appear even lower.

What will be the impact on consumers' pockets?

In addition to WPI, retail inflation, or CPI, also declined to a record low of 0.25 percent in October. When both types of inflation decrease, expectations increase that the RBI may cut interest rates. If this happens, EMIs and loans may become cheaper in the future, providing financial relief to both young people and the general public.

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