WPI inflation accelerates to 1.9% in July on higher food prices

Wholesale inflation accelerated to 1.88% in July, with food inflation snapping a two-month contraction, and inflation in the minerals segment firming up.

The Wholesale Price Index grew 0.9% in June. Inflation in the food segment of the primary articles category in July came in at 2.15%, up from the contraction of 3.57% seen in the previous month. Inflation in the minerals segment of the primary articles category accelerated to 24.8% in July from a contraction of 2.02% in June.

“Wholesale prices have edged up in the month of July on the back of sharp increase noted in vegetable prices,” Pankaj Patel, President of FICCI said in an emailed comment. “However, the broad conditions for agri-prices remain conducive given normal monsoon in most parts of the country and stable global commodity prices. This outlook is also corroborated in the second part of the Economic Survey released last week.”

Inflation in the fuel and power category eased in July to 4.37% from 5.28% in the previous month. Similarly, inflation in manufactured products slowed marginally to 2.18% in July from 2.27% in June.

“Continuous increase in the prices of petrol and high speed diesel due to the rise in prices of crude oil globally have to be taken care of by policymakers since it may have impact on import bills and subsequent impact on exchange rates,” Assocham Secretary General DS Rawat said in a statement. “And it may have negative impact on input prices for the industry which has already started to feel the pressure on its profitability.”

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Printable version | Apr 16, 2021 6:02:53 PM |

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