Wholesale inflation slows to 5.09% in July
NEW DELHI: Wholesale inflation eased to 5.09% in July on account of cheaper food articles, especially fruits and vegetables, government data showed today.
The wholesale price index (WPI) based i nflation was recorded at 5.77% in June. In July 2017, it was at 1.88%.
The wholesale inflation in food articles category was (-)2.16% in July as against (+) 1.80% in the previous month, the Commerce and industry ministry data showed.
Among others in the basket, vegetable prices fell by 14.07% during the reported month as compared to a growth of 8.12% in June. Likewise, there was an 8.81% fall in wholesale prices of fruits in July as against a rise of 3.87% in the preceding month.
In pulses category, inflation stood at (-) 17.03% as against (-) 20.23%.
“Primary food articles reverted to a year-on-year disin- flation after a gap of three months, driven by vegetables, fruits, as well as pulses. Although, available trends suggest a month-on-month pick up in the prices of vegetables, sugar, milk, pulses and cereals in August 2018, primary food articles may continue to record year-on-year disinflation in the ongoing month,” said Aditi Nayar, principal economist, Icra. For non-food articles, the inflation during the month under review increased to 3.96% as against 3.81% in June.
For fuel and power and manufactured products, it increased at a faster pace of 18.10% and 4.2%, respectively.
The rise in inflation in these categories was in line with the trend in prices of certain commodities, Nayar further said.
Yesterday’s government data on retail inflation, the key input for the Reserve Bank to review its monetary policy every two months, recorded a nine-month low print at 4.17% on account of cheaper food articles.