WPI Inflation - Falls to Zero ::Edelweiss, link

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WPI inflation for November came in below expectations at zero % compared to 1.8% YoY in October. The decline was broad based and seen across categories. This is the sixth straight month of decline in WPI and levels are now close to 2009 lows. Thus, over the past six months, domestic demand/core inflation has eased by ~280bps, agri-inflation by 570bps while imported category is showing outright deflation. Accelerated fall in global commodity prices, stable exchange rate, cuts in domestic retail fuel prices and the government’s prudent food policies are the key factors behind such strong disinflation. We expect this trend to continue as second round effects of the commodities fall has yet to materialise.

LINK
https://www.edelweiss.in/research/WPI-Inflation--Falls-to-Zero/27837.html