India’s Wholesale Price Index (WPI) inflation year-on-year has decreased significantly to 0.13% from the previous 0.52%, marking a substantial drop of 0.39 percentage points. This indicates a lower inflationary pressure in the wholesale market compared to the previous period.
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The actual WPI inflation figure of 0.13% came in well below the analyst estimate of 0.50%, suggesting a softer inflation environment than anticipated. This unexpected decline is likely to boost sentiment in interest rate-sensitive sectors such as banking and real estate, as lower inflation may reduce pressure on the central bank to raise interest rates. The market impact is expected to be short-term, driven by immediate sentiment shifts.