India WPI Inflation Falls To Lowest In Five Months At 13.9% In July

India’s wholesale inflation fell to the lowest since February.

Inflation, as measured by the Wholesale Price Index, stood at 13.93% in July 2022 against 15.18%, according to data released by the Ministry of Commerce and Industry on Tuesday.

The gauge fell 0.13% over the previous month compared with a 0.65% decline in June.

The moderation was driven by sequential declines in prices of primary articles and manufactured products, which offset the rise in fuel prices and pulled down overall WPI inflation by a modest 0.1% month-on-month, said Rahul Bajoria, chief economist at Barclays.

While inflation in India appears to have peaked, the limited moderation in WPI inflation suggests that the price pressures in the economy remain elevated, underscoring the need for the monetary policy to maintain a cautious approach over the coming months, he added.

WPI Inflation Internals (Year-On-Year)

• Inflation in manufactured products—the largest component of the index—stood at 8.16% compared with 9.19% in June.

• Primary articles inflation stood at 15.04% against 19.22% in the previous month.

• Inflation in food articles was at 10.77% versus 14.39% the previous month.

• Vegetables inflation stood at 18.25% compared with 56.75% in June.

• Inflation in non-food articles was at 12.81% against 18.81% in the previous month.

• Fuel and power inflation stood at 43.75% against 40.38% in June.