India’s wholesale inflation eased to 9.78 per cent in July from 9.87 per cent in June, according to data released by the commerce ministry on Friday. The June reading was the highest so far under the government’s new WPI series, which uses 2022-23 as the base year.
The July reading comes a couple of days after the government data showed India’s retail inflation rose to 4.45 per cent in July from 4.38 per cent in June, with food prices continuing to put pressure on consumer inflation.
A Reuters report expected WPI likely to remain elevated at 9.95 per cent in July, roughly unchanged from June levels.
Fuel, food prices drive wholesale inflation
Inflation in the fuel and power basket stood at 20.05 per cent in July, compared with 27.41 per cent in June. The category had been a major driver of wholesale price pressures in recent months, although its inflation rate eased from 30.33 per cent in May to 27.41 per cent in June.
Inflation in primary articles stood at 8.52 per cent in July against 7 per cent in June, while inflation in manufactured products was 8.29 per cent, compared with 7.48 per cent in the previous month.
The WPI food index, which includes food articles under primary articles and manufactured food products, recorded inflation of 6.65 per cent in July against 6.14 per cent in June. Food inflation had accelerated sharply in June from 4.49 per cent in May.
