July WPI inflation slows to 5.09%
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 inflation 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.