Wholesale price inflation slips below 14% for the first time since February

Fuel and power inflation resurge in July; diesel inflation at 72.4% 

August 16, 2022 01:44 pm | Updated 02:54 pm IST - NEW DELHI:

This is the 16th month in a row that Wholesale Price Inflation has been over 10% in India. File

This is the 16th month in a row that Wholesale Price Inflation has been over 10% in India. File | Photo Credit: Sushil Kumar Verma

Wholesale Price Inflation moderated to a five-month low of 13.93% 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.

This is the 16th month in a row that wholesale inflation has been over 10% in India. The Commerce and Industry Ministry also revised May’s inflation rate upward to a fresh high of 16.63% from the earlier estimated record inflation rate of 15.88%.

Despite the paring of the headline inflation rate, the Wholesale Price Index (WPI) dropped only 0.13% on a month-on-month basis between June and July, as fuel and power inflation jumped 6.56% sequentially, offsetting the moderation in other categories. 

Within fuel and power, diesel inflation soared back up to hit 72.4%, from a four-month low of 54.9% in June. Petrol inflation moderated marginally from 57.8% to 55.3%. The pace of price rise in LPG eased to 32% from 53.2% in June. 

“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 pace of wholesale price rise in food items dropped from 12.41% in June to 9.41% in July, led by a sharp drop in vegetable inflation to 18.25%, the lowest rate in at least six months and less than a third of the 56.75% inflation recorded in June.

Inflation in milk dropped to a four-month low of 5.45%, while eggs, meat, and fish prices rose at the slowest pace in three months at 5.55%. However, cereals (9.76%), potato (53.5%), fruits (29.44%), and paddy (3.1%) hit their highest level of inflation in at least six months. Wheat inflation hit a four-month high of 13.61%, from 10.34% in June.

Manufactured products saw a broad-based decline in price rise to 8.16% from 9.19% in July. Pharma and leather products bucked the trends to hit the highest inflation rate in at least six months at 4.17% and 4.77%, respectively. Semi-finished steel products were the only other manufactured item to see a rise in inflation, albeit marginally, to 11.11% from 10.73% in June.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.