New Delhi, August 17 (The South India Times): India’s wholesale price index (WPI)-based inflation eased to 13.93 percent in July 2022 from 15.18 percent in the previous month, data from the Commerce & Industry Ministry showed on Tuesday. Even as wholesale inflation has eased it remains elevated and in double-digit for the last 16 months.”Inflation in July 2022 is primarily contributed by rising in prices of mineral oils, food articles, crude petroleum & natural gas, basic metals, electricity, chemicals & chemical products, food products, etc. as compared to the corresponding month of the previous year,” said the official release.
The WPI captures the average movement of wholesale prices of goods and is primarily used as a GDP deflator. It reckons only basic prices and does not include taxes, rebate/trade discounts, transport, and other charges. Last week, data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed retail inflation had dipped to a five-month low of 6.71 percent in July providing much-needed respite to policy-makers who have been concerned about a spike in prices, especially of food and fuel.
The latest WPI data shows prices of food articles and manufactured products softened in July. Food article inflation stood at 10.77 percent in July as against 14.39 in June. The annual rate of increase in prices of vegetables dropped sharply to 18.25 percent during July as compared to 56.75 percent in June. Manufactured product inflation in July stood at 8.16 percent in July. Fuel and power basket inflation came in at 43.75 percent in July as compared to 40.38 percent in the previous month, as per the WPI data.
Experts had earlier said that fears of a recession in major developed economies may impact overall demand and further lead to softening of global commodity prices. As a result, the WPI inflation may ease in the coming months. The Reserve Bank of India (RBI) has raised the policy repo rate by 140 basis points (bps) since May this year to contain inflation.
