Wholesale Inflation Rises 0.58% In July Even As Food Prices Fall

The wholesale price-based inflation in India declined 0.58 percent in July even as food items turned costlier.

In a statement on Friday, the commerce and industry ministry said that the monthly WPI (Wholesale Price Index), a measure of wholesale inflation, rose stood at (-) 0.58 percent (provisional) for the month of July 2020 as compared to 1.17 percent during the corresponding month of the previous year.

In June, WPI was at (-) 1.81 percent, while for the month of May and April it was (-) 3.37 percent and (-) 1.57 percent respectively.

Inflation in food articles during July stood at 4.08 percent, as against 2.04 percent in June. However, fuel and power basket inflation fell 9.84 percent in July, compared to 13.60 percent in the previous month. Manufactured products, however, witnessed inflation of 0.51 percent in July, as against 0.08 percent in June.

The RBI in its policy review last week, kept interest rates unchanged and said it sees upside risk to inflation. The apex bank expects retail inflation to be moderate in the October-March period. July retail inflation was at 6.93 percent, as against 6.23 percent in June.