Wholesale price inflation at 13.93% in July

16 Aug 2022 , 01:17 PM

Inflation in wholesale prices has now exceeded 10% for 16 consecutive months thanks to another month of double-digit growth in July.

According to information issued by the commerce ministry on August 16, India’s inflation based on the Wholesale Price Index (WPI) decreased to 13.93% in July.

The WPI inflation rate dropped from a record-breaking 16.63% in May to 15.18% in June.

WPI inflation was 11.57% in July 2021.

The wholesale price index increased by double digits in July, marking the 16th consecutive month that the WPI has risen above the 10% threshold.

Food inflation dropped to 9.41% in July, down 300 basis points from June, and this contributed to a decrease in the WPI.

Among food goods, vegetables experienced a significant monthly price drop of 12.7%. Fruits’ index dropped 3.0%, while eggs, meat, and fish’s index dropped 2.6% from June.

Overall, the food index, which makes up 24% of the WPI basket, decreased by 2.2% in July over the previous month. As a result, the WPI’s entire-commodity index decreased by 0.1% from June.

The manufactured goods index fell by 0.4% in July compared to June, indicating a slowing in price movement. A 16-month low of 8.16% was reached in year-over-year inflation for these goods, which account for a staggering 64% of the WPI basket.

In contrast, the index for the category rose by 6.6% from June to reach 43.75% for fuel and electricity inflation.

Following a smaller decline in retail inflation, wholesale inflation declined in July.