India's annual inflation surprisingly slipped in July from the previous month, raising expectations of monetary easing by the Reserve Bank of India (RBI) on July 31.
Inflation, as measured by the wholesale price index (WPI), stood at 6.87% last month versus 7.25% in June, the Union Commerce & Industry Minister said today.
The annual inflation rate was at 9.36% during the corresponding month of the previous year.
The official WPI for ‘All Commodities’ for July rose by 0.4% to 164.8 from 164.2 in the preceding month.
Build up inflation in the financial year so far was 2.36% compared to a build up of 3.14% in the corresponding period of the previous year.
The Government left the inflation rate and WPI for May unchanged at 7.55% and 163.9, respectively as reported on June 14.
WPI Break-up for July 2012:
Primary Articles: 10.39% vs 10.46% MoM
Food Group: 10.06% vs 10.81% MoM
Fuel & Power: 5.98% vs 10.27% MoM
Manufacturing Products: 5.58% vs 5.00% MoM
Source: Commerce & Industry Ministry.
Markets @ 11:18 am (IST)
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Onions turned cheaper by ~10% in the month under consideration, while Vegetable prices were up ~24% on an annual basis. Fruit prices were static year over year, while Milk prices increased ~8%. Egg, Meat & Fish became costlier by ~16% compared to the year-ago period.
Potato prices soared by a staggering ~73% on an annual basis while Cereal prices went up by ~8.3% year over year. Prices of Pulses rose by ~28.2%. Annual inflation in Rice stood at ~10.1% while Wheat prices were up ~6.7%.
In the Non-Food category, prices of Oilseeds rose by ~25.2% from a year ago while that of Fibres fell by ~6%. Mineral prices climbed more than ~8.4% from last year.
In Fuel & Power category, LPG prices were up ~0.7%, petrol by ~8.6% while diesel prices remained unchanged.
In Manufactured Products category, Food Products prices rose by ~6.25%, while that of Edible Oils increased by ~10.3%. The price of Beverages, Tobacco & Tobacco Product jumped ~6% while that of Cotton Textiles fell ~0.6%. Sugar prices climbed by ~8%.
Price of Wood & Wood Products increased by ~4.4% while that of Leather & Leather Products increased ~2.85%.
Chemicals & Chemical Products' prices jumped by ~7.2% while that of Non-Metallic Mineral Products rose by 8.1%, Cement & Lime ~11%, Basic Metals Alloys & Metal Products ~9.6% and Iron & Semis by ~12.6%.
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