Wholesale Price Inflation Plummets, Deflation Persists

Wholesale price inflation recorded a negative rate of 0.58% in July, marking the second month in the red, as food and fuel prices deflated despite a rise in manufactured item costs, according to government data. The Reserve Bank of India held policy rates steady amidst retail inflation hitting an eight-year low.

Wholesale price inflation continued its downward trend for the second month, registering a negative rate of 0.58% in July, primarily driven by declining prices in food articles and fuel, government data revealed on Thursday.

Despite the deflation in natural resources, the cost of manufactured goods saw an uptick, with inflation at 2.05% in July compared to 1.97% the previous month.

The Reserve Bank of India maintained its benchmark policy rates at 5.5% earlier this month as retail inflation fell to an eight-year low of 1.55%.

(With inputs from agencies.)