India's wholesale inflation drops to 2.04 per cent in July
The reduction in wholesale inflation is attributed to a drop in prices of key commodities, including food and fuel. Lower input costs and decreased demand pressures have contributed to the cooling of inflationary trends.
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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