WPI inflation in July recorded at -1.36% against -4.12% in June

Wholesale Price Index inflation remained in negative territory for yet another month. WPI inflation was recorded at -1.36 per cent in July as against - 4.12 per cent in June. The Ministry of Commerce & Industry said in an official statement that the decline in the rate of inflation in July can be attributed to the fall in prices of mineral oils, basic metals, chemical & chemical products, textiles and food products.

The July WPI inflation comes after the wholesale price index remained in the negative territory in May at -3.48 per cent as well as in April at -0.79 per cent.

“The month over month change in WPI index for the month of July, 2023 stood at 1.95 per cent as compared to June, 2023,” the official statement added.

The food index-based WPI increased from -1.24 per cent in June to 7.75 per cent in July. The food index that consists of food articles from the Primary Articles group and 'Food Product' from Manufactured Products group increased from 175.2 in June to 187.7 in July. The food index includes products such as cereals, paddy, wheat, pulses, vegetables, potato, onion, fruits, milk, eggs, meat and fish.

The primary articles index increased by 8.05 per cent from 176.3 in June to 1.5 in July. Prices of food articles, crude petroleum and natural gas, and non-food articles increased in July as compared to June, while prices of minerals declined in July.

The index for fuel and power declined by 0.48 per cent from 146.0 in June to 145.3 in July. While prices of coal increased in July, prices of electricity and mineral oils declined.

The manufactured products index declined by 0.29 per cent to 139.6 in July from 140.0 in June. “The increase in price is mainly contributed by food products, machinery and equipment, computer, electronic and optical products, other non-metallic mineral products and electrical equipment etc. Some of the groups that have witnessed a decrease in prices are basic metals, chemical and chemical products, textiles, other manufacturing, paper and paper products etc. in July, 2023 as compared to June, 2023,” the statement added.

Also read: WPI inflation remains in negative territory for third straight month in June