In Focus: WPI Inflation Relaxes to 5-Month Low in July; Major Drivers

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In Focus: WPI Inflation Relaxes to 5-Month Low in July; Major Drivers
Credit: © Reuters.

By Malvika Gurung

Investing.com -- India’s inflation as measured by the wholesale price index dropped to a five-month low of 13.93% in July 2022, compared to 15.18% in June and an over 30-year high of 16.63% in May 2022.

According to fresh data released by the Ministry of Commerce & Industry on Tuesday, the WPI inflation for July continued to remain in double digits for the 16th consecutive month since Apr 2021. The print stood at 11.57% in July 2021.

The month-on-month decline in inflation was led by lower prices of food articles and manufactured products.

Inflation in food items eased to 10.77% in July from 14.39% in the previous month, led by a steep fall in vegetable prices to 18.25% from 56.75 in June 2022.

Prices of manufactured products, which comprise a significant 64% of the WPI umbrella, reduced 0.4% in the month under review, pulling down the price index as a whole. 

Moreover, the YoY inflation of manufactured products tumbled to a 16-month low of 8.16%.

Retail inflation has remained above the RBI’s upper tolerance limit for the seventh consecutive month and eased to a 5-month low of 6.71% in July, still over the 6% band.

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