Wholesale price inflation eased marginally to 9.78 per cent in July, as against 9.87 per cent in June, on cooling in prices of fuel and power and food items. This is the first time under the government’s wholesale price index (WPI)-based inflation data as per the new 2022-23 base year that inflation has dropped month-on-month.
The WPI has been on an upward trajectory since the beginning of this fiscal as the West Asia war and the resultant blockade of the Strait of Hormuz, through which the majority of crude oil is imported into India, pushed up global crude and fertiliser cost with spillover effect on food prices.
“Across groups, mineral oils (containing petroleum products), food articles, manufacture of basic metals, non-food articles, manufacture of food products, and manufacture of chemicals and chemical products have been major drivers of WPI inflation in July 2026,” the commerce and industry ministry said while releasing the monthly Wholesale Price Index (WPI) data on Friday.
Wholesale inflation in fuel and power dropped to 20.05 per cent in July, as against 27.41 per cent in June. Inflation in food articles too eased to 5.44 per cent in July, from 5.49 per cent in June.
However, manufactured products saw an uptick in inflation at 8.29 per cent in July, against 7.48 per cent as in June. Data released earlier this week showed India’s retail inflation rose to 4.45 per cent in July from 4.38 per cent in June, on high food prices.
The Reserve Bank’s monetary policy committee, earlier this month, kept benchmark policy rates unchanged at 5.25 per cent and projected retail inflation at 5 per cent for FY27, citing deficient and uneven south-west monsoon amidst El Niño conditions.
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