WPI-based inflation for July eased to 2.04 per cent on annual basis
As per the data released by the commerce and industry ministry, food inflation in July was 3.45 per cent, down from 10.87 per cent in June, mainly due to month-on-month decline in prices of vegetables, cereals, pulses and onion
New Delhi: India’s wholesale price index or WPI-based inflation for the month of July eased to a 3-month low of 2.04 per cent on an annual basis. The government, however, attributed to the positive rate of inflation in July due to an increase in prices of food articles, manufacture of food products, mineral oils, crude petroleum and natural gas and other manufacturing products as well. In June, WPI inflation was at a 16-month high of 3.36 per cent, driven by costlier food items, while it was (-) 1.23 per cent in July last year, the government data showed on Wednesday.
As per the data released by the commerce and industry ministry, food inflation in July was 3.45 per cent, down from 10.87 per cent in June, mainly due to month-on-month decline in prices of vegetables, cereals, pulses and onion. “Vegetable prices also recorded a deflation of 8.93 per cent in July, against 38.76 per cent inflation in the previous month,” the ministry said in a statement.
“Positive rate of inflation in July, 2024 is primarily due to increase in prices of food articles, manufacture of food products, mineral oils, crude petroleum & natural gas, other manufacturing products etc. The annual rate of inflation of the manufactured products group increased to 1.58 per cent in July 2024, from 1.43 per cent in June 2024. Besides, inflation in fuel and power basket rose to 1.72 per cent in July, from 1.03 per cent in the previous month,” the ministry added.
Commenting on the WPI inflation, ICRA senior economist Rahul Agrawal said that the core (non-food manufacturing) WPI continued to inch up for the fifth consecutive month, touching a 17-month high of 1.2 per cent in July 2024, even as the index contracted on a sequential basis for the second consecutive month.
“The near-term outlook for WPI inflation remains benign. As per the data released by the department of consumer affairs, the prices of a majority of food items have dipped on a sequential basis in August 2024 so far, amid a pick-up in the monsoon and a healthy progression in kharif sowing,” he said.
“This is likely to aid in containing the base effect-led uptick in the primary food articles inflation print in the ongoing month. Overall, ICRA expects the WPI inflation to remain unchanged at 2 per cent in August 2024,” Agrawal added.