India's wholesale inflation cools but stays near 10% in July
What's the story
India's wholesale inflation has eased to 9.78% in July, down from June's 9.87%, according to data released by the Ministry of Commerce on Friday. The June figure was the highest recorded so far under the new Wholesale Price Index (WPI) series introduced by the government with a base year of 2022-23.
Retail impact
Retail inflation rose to 4.45% in July
The easing of wholesale inflation comes as India's retail inflation rose to 4.45% in July, up from June's 4.38%.
The rise is mainly attributed to rising food prices that continue to put pressure on consumer inflation.
A Reuters report had predicted WPI would remain high at 9.95% in July, roughly unchanged from June levels.
Sectoral shifts
Inflation in fuel and power category eases
Inflation in the fuel and power category stood at 20.05% in July, down from June's 27.41%. This category had been a major contributor to wholesale price pressures in recent months.
Meanwhile, inflation for primary articles rose to 8.52% in July from June's 7%, while manufactured products saw an increase to 8.29% from last month's 7.48%.
Food impact
WPI food index rises to 6.65%
The WPI food index, which includes food articles under primary articles and manufactured food products, recorded an inflation of 6.65% in July, up from June's 6.14%.
This marks a sharp acceleration in food inflation from May's 4.49%.