WPI contracts 1.36% in July, after deflating 4.12% in June

economictimes.indiatimes.com:

wholesale inflation contracted 1.36 per cent on a year-on-year basis in the month of July after contracting 4.12 per cent in June, data showed on Monday. On a month-on-month basis, the index stood at 1.95 per cent. Economists polled by Reuters had estimated the wholesale price index for July would fall 2.70%.

«Decline in the rate of inflation in July, 2023 is primarily contributed by fall in prices of mineral oils, basic metals, chemical & chemical products, textiles and food products,» the Commerce Ministry said in a press release. India's WPI reading has remained in the negative territory for four straight months. June's WPI reading of 4.12 per cent was the lowest since September 2015.

Food index inflation surged to 7.75 per cent on an annual basis after contracting 1.24 per cent in June. On an MoM basis, food index inflation rose 7.13 per cent in July, up from the 0.63 per cent contraction seen in May 2023 and 1.33 per cent in June. Among food articles, inflation in vegetables stood at 62.12 per cent in July this year, up from 18.46 per cent in July 2022.

Primary articles' inflation stood at 7.57 per cent, up from 2.87 per cent contraction seen in June. Fuel and power inflation contracted 12.79 per cent after contracting 12.63 per cent in June. Manufactured products' inflation contracted 2.51 per cent against a 2.71 per cent contraction seen in June.