The Wholesale Price Index (WPI) inflation data for July has been released today. According to the Ministry's data, WPI-based inflation reached 2.04% in July, a significant decrease compared to June. Earlier, on August 12, retail inflation data was also released, showing a similar softening trend.
Decline in Wholesale Inflation
The drop in wholesale inflation can be attributed to the decline in prices of food items, especially vegetables, and manufactured goods. In July, the WPI stood at 2.04%, down from 3.36% in June, which had marked a 16-month high.
Details from DPIIT
The Department for Promotion of Industry and Internal Trade (DPIIT) stated in an X post that the annual WPI inflation rate in July 2024 was 2.04%, compared to 3.36% in June 2024.
The inflation rate for primary articles under the WPI was 3.08% in July 2024, down from 8.80% in June 2024. However, the WPI inflation rate for fuel and power increased to 1.72% in July 2024, up from 1.03% in June 2024.
DPIIT also mentioned that the annual inflation rate for the WPI's manufactured products group rose to 1.58% in July 2024, slightly up from 1.43% in June.
Retail Inflation Also Eases
Data released earlier this week revealed that retail inflation in July stood at 3.54%, hitting a 5-year low. The Reserve Bank of India (RBI) considers retail inflation while formulating its monetary policy. In the August MPC meeting, the RBI decided to keep the repo rate steady at 6.5% for the ninth consecutive time, reflecting the continued focus on maintaining stability.