The wholesale price-based inflation soften to a five-month low of 13.93% in July on easing prices of food articles and manufactured products. The WPI-based inflation softened for the second consecutive month in July, developing hopes of further decline in wholesale prices in the months to come. The Wholesale Price Index-based inflation, after scaling a record high of 15.88% in May, declined to 15.18% in June. It was 13.43% in February. It was 11.57 % in July last year.
The WPI inflation eases to a five-month low of 13.93% in July; food prices soften and continued their declining trend for the second month in July but remained in double-digits for the 16th consecutive month starting April last year. Inflation in food articles in July eased to 10.77% from 14.39% in June. The rate of price rise in vegetables dropped substantially to 18.25% in July against 56.75% in the last month.
“The world economy is recovering as we witness an increase in demand for metals, oils, crude, and fertilizers. Moving forward, as the crude prices soften in the summer season and supply issues getting resolved will help ease WPI inflation in the next few months,” said, CRCL LLP CEO and Managing Partner DRE Reddy.
To break difficult high inflation, the Reserve Bank of India has hiked the key interest rate three times this year to 5.40 percent. The central bank had projected retail inflation to average 6.7 percent in 2022-23.