India's inflation based on the Wholesale Price Index (WPI) declined to 13.93 percent in July, data released on August 16 by the Commerce Ministry.
August 17: According to the data received by the commerce ministry, India's inflation based on the Wholesale Price Index (WPI) decreased to 13.93 percent in July from 15.18% in June driven by a lower pace of price rise for primary products, food items, and manufactured products, even though fuel and power inflation resurged from 40.38% in June to 43.75% in July.
In July 2021, WPI inflation stood at 11.57 percent.
In India, wholesale inflation has exceeded 10% for 16 consecutive months. The Commerce and Industry Ministry also increased the predicted record inflation rate for May from 15.88% to a new high of 16.63%.
Among food products, vegetables experienced a significant monthly price drop of 12.7%. Fruits' index dropped 3.0 percent, while eggs, meat, and fish's index dropped 2.6 percent from June.
Lower prices of manufactured products also helped bring down WPI inflation last month.
The Wholesale Price Index (WPI) decreased only 0.13% from June to July despite a reduction in the headline inflation rate. This is because fuel and power inflation increased 6.56% sequentially, offsetting the moderation in other categories.
Diesel inflation in the fuel and power category rocketed back up to 72.4% from a four-month low of 54.9% in June. Petrol price inflation slightly decreased from 57.8% to 55.3%. LPG price growth slowed from 53.2% in June to 32% today.
“Inflation in July, 2022 is primarily contributed by rise 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,” noted the Department for Promotion of Industry and Internal Trade in the Commerce and Industry Ministry.
The decline in Consumer Price Index (CPI) inflation is unlikely to do much to alter the Reserve Bank of India's interest rate hike plans. Since the beginning of May, the central bank has increased the repo rate by 140 basis points, and it is widely anticipated that it will do so once more next month as it faces the possibility of not meeting its inflation target.
The Monetary Policy Committee is scheduled to next meet September 28-30.
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 "Wholesale price inflation drops to 13.93 percent since February 2022")
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