New Delhi- Wholesale inflation remained in the negative territory for the sixth straight month in September at (-) 0.26 per cent on easing prices of food items, especially vegetables.
The wholesale price index (WPI)-based inflation rate has been in the negative since April and was (-)0.52 per cent in August. In September last year, it was 10.55 per cent.
Experts said the continued deflation in WPI in year-on-year terms was mostly due to faster decline in food prices.
Inflation in food articles eased to 3.35 per cent in September, after remaining in double digits in the previous two months. It was 10.60 per cent in August.
In vegetables, inflation was (-)15 per cent, as against 48.39 per cent in August. In potato, it was (-)25.24 per cent in September, as against (-)24.02 per cent in the previous month.
However, some hardening in inflation was seen in food items like pulses, onion, milk and fruits during September.
Inflation in pulses was 17.69 per cent, while in onion it was at a high of 55.05 per cent during the month.
Fuel and power basket inflation was at (-)3.35 per cent in September, against (-)6.03 per cent in August.
In manufactured products, inflation rate was (-)1.34 per cent, as against (-)2.37 per cent in August.
“Deflation in September 2023 is primarily due to fall in prices of chemical & chemical products, mineral oils, textiles, basic metals and food products as compared to the corresponding month of the previous year,” the commerce and industry ministry said on Monday.
Barclays MD & Head of EM Asia Economics Rahul Bajoria said the easing momentum in core inflation and decline in vegetable prices are driving the moderation in retail inflation. But the sequential rise in the WPI for manufactured products bears watching, if producers pass on higher costs into retail prices.
“As of now, firm surveys indicate the pace of increase in selling prices is lower than that in input prices (as seen in PMIs for manufacturing and services, and RBI’s industrial outlook survey). We expect RBI to remain on a prolonged pause, as it monitors uncertainty on the commodity front, both in domestic non-perishable food prices and international energy prices,” Bajoria said.
Data released last week showed that the annual retail or consumer price inflation was at 5.02 per cent in September, a 3-month low level.
Earlier this month, RBI projected the CPI inflation to be at 5.4 per cent for 2023-24. The central bank kept key policy interest rate on hold in the fourth consecutive meeting for deciding monetary policy as it targets to keep inflation within the target band of 2-6 per cent.
Experts See WPI Inflation Rising In Second Half This Fiscal
The Wholesale Price Index (WPI) in India is likely to rise in the second half of the ongoing fiscal and a prolonged deflationary trend could impact growth, experts said on Monday.
Wholesale inflation remained in the negative territory for the sixth straight month in September at (-) 0.26 per cent on easing prices of food items, especially vegetables.
Deflation in WPI in September is primarily due to the fall in prices of chemicals and chemical products, mineral oils, textiles, basic metals, and food products as compared to the year-ago period, the commerce and industry ministry said on Monday.
“In September, the WPI exhibited its sixth consecutive month of contraction, with a decline of 0.3 per cent year-on-year (y-o-y), lower than the previous month’s contraction of 0.5 per cent,” CareEdge Chief Economist Rajani Sinha said.
“The continued contraction in WPI can be attributed to the deceleration in food prices, as well as the ongoing decline in fuel and manufactured product prices,” Sinha said.
She suggested that while the fading impact of a high base may lead to a “slight increase” in WPI in the second half of the fiscal year, the overall WPI inflation is expected to remain low.
Elevated global crude oil prices and potential risks to kharif harvest due to uneven rainfall also pose upside risks to WPI inflation, Sinha said.
Abhirup Sarkar, an economist and professor at the Indian Institute of Statistics, told PTI that while the decrease in fuel prices is positive news, geopolitical conflicts in Russia and the Middle East could lead to an increase in international oil prices, affecting wholesale price inflation in India.
He said although wholesale food prices have seen a decline, it may take time for this to be reflected in retail prices, as it depends on traders and their ability to pass on the price reduction to consumers.
Sarkar cautioned that prolonged deflation in WPI can have a negative impact on the economy, indicating lack of demand and potentially slowing down growth.
The WPI-based inflation rate has been in the negative zone since April and was (-) 0.52 per cent in August.
In September last year, it was 10.55 per cent. Inflation in food articles eased to 3.35 per cent in September, after remaining in double digits in the previous two months. It was 10.60 per cent in August.
“Deflation in September 2023 is primarily due to fall in prices of chemical and chemical products, mineral oils, textiles, basic metals and food products as compared to the corresponding month of the previous year,” the commerce and industry ministry said on Monday.
Fuel and power basket inflation was at (-) 3.35 per cent in September, against (-)6.03 per cent in August. In manufactured products, inflation rate was (-) 1.34 per cent, as against (-) 2.37 per cent in August.
Data released last week showed that the annual retail, or consumer price inflation, was at 5.02 per cent in September, which was a three-month low.
Govt amends aircraft rules; commercial pilot licenses to be valid for 10 years
New Delhi, Oct 16 (PTI) Commercial pilot licenses will now be valid for ten years, with the government amending rules as part of efforts to further improve ease of doing business in the aviation sector.
Till now, the validity of Commercial Pilot License (CPL) was for five years and after completion of that period, it had to be renewed.
The civil aviation ministry amended the Aircraft Rules, 1937.
Among various changes made, the validity of licenses in relation to Airline Transport Pilot License (ATPL) and CPL holders has been increased from five years to ten years.
“This change is expected to reduce administrative burden on pilots and aviation authorities like DGCA, promoting a more streamlined and efficient licensing process,” the ministry said in a statement on Monday.
Besides, rules have been amended to address concerns related to the display of lights in the vicinity of an aerodrome.
It has also been clarified that the term ‘light’ encompasses lantern lights, wish kites, and laser lights. Also, the government’s jurisdiction over those exhibiting such lights has been extended from 5 kilometres to 5 nautical miles around an aerodrome.
“It is made explicit that the government possesses the authority to take action against individuals displaying lights that disrupt the safe operation of aircraft or pose hazards to the operating crew.
“Should such lights remain unattended for 24 hours, the government is empowered to enter the location and extinguish them,” the ministry said.
Simultaneously, the matter should be reported to the relevant police station for legal action under the Indian Penal Code (IPC).
When the source of the observed light is unidentifiable or if it shifts locations, the airport or airline operator is obligated to promptly report the incident to the local police station, initiating potential criminal proceedings.
Another amendment is that the requirement for validation of foreign licenses has been removed. “This change signifies aligning the regulations with the evolving needs of the aviation sector,” the ministry said.
Further, the requirements related to continued competence for Air Traffic Controller (ATC) license holders have been liberalised.
According to the ministry, this change offers increased flexibility to accommodate situations with limited movements or watch hours.
ATC license holders must complete a minimum of ten hours of simulated exercises, including emergencies. Subsequently, they must undergo a skill assessment for their respective rating within ten consecutive days of commencing these exercises, it said.
The ministry said the amendments to the Aircraft Rules, 1937, notified on October 10, mark a crucial shift in promoting ease of doing business and ensuring safety and security within the aviation sector.
India is one of the fastest growing aviation markets in the world. Airlines are expanding their aircraft fleet and will be hiring more pilots to cater to rising air traffic demand.
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