India’s wholesale price inflation eased to 9.78 percent in July, a slight dip from 9.87 percent in June, according to data released by the commerce ministry on August 14. The moderation was largely driven by a sharp fall in fuel and power inflation, while prices of primary articles and manufactured products increased.
The Wholesale Price Index (WPI) for all commodities slipped marginally to 110.0 in July from 110.2 in the previous month. The print shows a split in price pressures: energy costs fell, but primary and manufactured goods saw a rise.
Fuel and power inflation dropped sharply to 20.05 percent in July from 27.41 percent in June, providing the biggest relief to headline inflation. The fuel and power index fell to 105.4 from 111.1. Within this category, mineral oil inflation slowed to 32.4 percent from 46.48 percent, while crude petroleum and natural gas moderated to 26.99 percent from 34.75 percent. Electricity prices rose 1.09 percent from a year ago after falling 0.76 percent in June. On a month‑on‑month basis, the mineral oils index declined to 113.2 in July from 122.9 in June, and the crude petroleum and natural gas index fell to 114.8 from 120.2.
Food price pressures strengthened during the month. The WPI Food Index inflation increased to 6.65 percent in July from 6.14 percent in June. Food articles eased marginally to 5.44 percent from 5.49 percent, but manufactured food products accelerated to 8.89 percent from 7.2 percent.
Primary articles inflation also climbed to 8.52 percent in July from 7 percent in June, with the index rising to 117.2 from 116.1. The rise was especially sharp in non‑food articles, where inflation surged to 17.66 percent from 11.07 percent, and minerals inflation increased to 13.28 percent from 9.45 percent.
Manufactured product inflation accelerated to 8.29 percent in July from 7.48 percent in June. Among major manufactured categories, textile inflation rose to 12.8 percent from 10.85 percent, chemicals and chemical products recorded 13.12 percent versus 12.78 percent in June, and basic metals inflation remained high at 12.56 percent.
Overall, the easing of energy prices provided some relief, but wholesale inflation remains above the 9 percent target for the third consecutive month, indicating persistent price pressures across the economy.