Wholesale Inflation Stays In Negative In July Even As Food Prices Rise

New Delhi:

The wholesale price-based inflation remained within the unfavourable territory for the fourth straight month in July at (-) 1.36 per cent on easing costs of gas, regardless that meals articles turned costlier.

The wholesale value index (WPI) based mostly inflation price has been within the unfavourable since April and was (-)4.12 per cent in June. In July final yr it was 14.07 per cent.

Inflation in meals articles skyrocketed 14.25 per cent in July in opposition to 1.32 per cent in June.

“Decline within the price of inflation in July, 2023 is primarily contributed by fall in costs of mineral oils, fundamental metals, chemical & chemical merchandise, textiles and meals merchandise,” the commerce and trade ministry mentioned on Monday.

Gas and energy basket inflation eased to (-)12.79 per cent in July from (-)12.63 per cent in June.

In manufactured merchandise, the inflation price was (-)2.51 per cent as in opposition to (-)2.71 per cent in June.

The RBI final week saved rates of interest unchanged at 6.5 per cent for the third straight assembly however signalled tighter coverage if meals costs drive inflation increased.

“The job on inflation continues to be not accomplished,” RBI Governor Shaktikanta Das had mentioned.

“Inflationary dangers persist amidst unstable worldwide meals and power costs, lingering geopolitical tensions and weather-related uncertainties.”

The RBI raised its inflation forecast for the present monetary yr ending March 2024 to five.4 per cent from 5.1 per cent earlier, citing pressures from meals costs.

The central financial institution takes under consideration retail or shopper value index based mostly inflation for formulating financial coverage. Retail inflation knowledge for July is scheduled to be launched later within the day.

(Apart from the headline, this story has not been edited by NDTV workers and is printed from a syndicated feed.)