India's wholesale inflation declined to 2.04% in July, down from 3.36% in June, according to government data released on Wednesday. The data was shared by the Department for Promotion of Industry and Internal Trade (DPIIT) on social media platform X, marking a significant drop in inflation based on the Wholesale Price Index (WPI).
Sector-wise breakdown
The inflation rate for Primary Articles dropped sharply to 3.08% in July from 8.80% in June. However, inflation for the Fuel & Power category saw a slight increase, rising to 1.72% in July from 1.03% in the previous month. Meanwhile, the Manufactured Products group experienced a modest rise in inflation, reaching 1.58% in July from 1.43% in June.
Comparison with retail inflation
The decline in wholesale inflation aligns with the trend seen in retail inflation, which hit a five-year low of 3.54% in July. This data comes on the heels of the Reserve Bank of India's (RBI) decision to keep the repo rate unchanged at 6.5% for the ninth consecutive time during its August monetary policy review, reflecting its focus on retail inflation in policy decisions.
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