WPI (Wholesale Price Index) inflation that reflects average price changes of goods that are bought and sold in the wholesale market cooled off in the latest month of July to 5.09% in contrast to the four and a half year high levels reached in June.
The inflation for the previous month was largely driven by high fuel and food prices which pushed the Centre to hike interest rates for the second consecutive time in August monetary policy review meet by 25 basis points to 6.5% basically to tame inflationary concerns. 1 basis point is one-hundredth of a percentage point.
WPI inflation in June accelerated at a sharper rate from 4.43% recorded for the month of May and 0.9% in the corresponding month a year ago. Notably for the reporting period of July, the WPI inflation decelerated by 0.86% in comparison to 1.56% in the June month.
Of the overall inflation index, as per the released government data, the fuel price index component registered an increase of 18.1% in July versus 16.18% in June while the manufacturing inflation clocked only a marginal increase to 4.26% from 4.17% in June.
Pulses inflation recorded an increase of -17.03% in comparison to -20.23% in June whereas vegetable inflation also came in higher at 14.07% Vs 8.12% in June. Notably of all the vegetables, onion inflation spooked customers with inflation rising at the rate of 38.82% vs 18.25% in June.
On Monday, the Central Statistics Office released data on CPI or consumer price index inflation which also slowed down for the month of July to 4.17% versus 4.9% recorded for the June month due to a decline in food prices.