Wholesale inflation slows to 5.09% in July on cheaper food articles

Wholesale inflation eased to 5.09 percent in July on account of cheaper food articles, especially fruits and vegetables, government data showed today.

The wholesale price index (WPI) based inflation was recorded at 5.77 percent in June. In July 2017, it was at 1.88 percent.

The wholesale inflation in food articles category was (-)2.16 percent in July as against (+) 1.80 percent in the previous month, the Commerce and Industry ministry data showed.

Among others in the basket, vegetable prices fell by 14.07 percent during the reported month as compared to a growth of 8.12 percent in June. Likewise, there was an 8.81 percent fall in wholesale prices of fruits in July as against a rise of 3.87 percent in the preceding month.

In pulses category, inflation stood at (-) 17.03 percent as against (-) 20.23 percent.

"Primary food articles reverted to a year-on-year disinflation after a gap of three months, driven by vegetables, fruits, as well as pulses. Although available trends suggest a month-on-month pick up in the prices of vegetables, sugar, milk, pulses, and cereals in August 2018, primary food articles may continue to record year-on-year disinflation in the ongoing month," said Aditi Nayar, principal economist, ICRA.

For non-food articles, the inflation during the month under review increased to 3.96 percent as against 3.81 percent in June.

For fuel and power and manufactured products, it increased at a faster pace of 18.10 percent and 4.26 percent, respectively.

The rise in inflation in these categories was in line with the trend in prices of certain commodities, Nayar further said.

Yesterday's government data on retail inflation, the key input for the Reserve Bank to review its monetary policy every two months, recorded a nine-month low print at 4.17 percent on account of cheaper food articles.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)