Wholesale price-based inflation rate stood at (-)1.36 per cent for the month of July 2023 as against (-)4.12 per cent recorded in June 2023, as per a Ministry of Commerce and Industry release. “The decline in the rate of inflation in July 2023 is primarily contributed by fall in prices of mineral oils, basic metals, chemical and chemical products, textiles and food products,” it said.
The WPI inflation fell in the negative territory for the fourth straight month. The WPI based inflation rate has been in the negative since April. In July last year it was 14.07 per cent. The primary articles inflation in July was at 7.57 per cent as against (-)2.87 per cent in June. For fuel and power, it stood at (-)12.79 per cent from (-)12.63 per cent in June; and for manufactured products it was at (-)2.51 per cent in comparison to (-)2.71 per cent a month ago.
Inflation in food articles was up 14.25 per cent in July against 1.32 per cent in June. Among food items, Inflation in cereals stood at 8.31 per cent vs 8.34 per cent in June, wheat inflation was at 8.01 per cent, pulses inflation stood at 9.59 per cent, vegetables inflation came in at 62.12 per cent, milk was at 8.15 per cent and eggs, meat and fish inflation stood at 1.79 per cent.
In fuel & power category, LPG inflation was at (-)20.69 per cent as against (-)22.29 per cent a month earlier, and petrol inflation was at (-)13.48 per cent.
In the manufactured segment, manufactured beverages inflation stood at 2.42 per cent, tobacco products at 3.38 per cent and manufactured textiles inflation was at (-)8.96 per cent.
The Food Index consisting of ‘food articles’ from primary articles group and ‘food product’ from manufactured products group have increased from 175.2 in June, 2023 to 187.7 in July, 2023. The annual rate of inflation based on WPI Food Index increased from (-)1.24 per cent in June, 2023 to 7.75 per cent in July, 2023.
Earlier last week, the Reserve Bank of India Monetary Policy Committee decided to keep the key policy repo rate unchanged at 6.5 percent, maintaining the status quo for the third time in a row. The MPC voted in 5:1 majority to maintain the ‘withdrawal of accommodation’ stance to ensure that inflation progressively aligns with the target, while supporting growth, said RBI Governor Shaktikanta Das.
