2 weeks ago

WPI inflation eases in July on softer global energy prices

WPI inflation eases in July on softer global energy prices
WPI inflation eases on softer energy prices, economists expect moderation ahead · thehansindia.com

India has a big number called wholesale inflation that shows how much the prices of goods rise before they reach shop shelves.

In July, this number went down just a little, from 9.87 percent in June to 9.78 percent.

The main reason was that energy prices around the world became a bit softer.

Fuel and power prices were still much higher than a year ago, but they rose more slowly than before.

Food prices, however, stayed high at 5.4 percent.

Factory-made goods also cost more because manufacturers were paying more for their materials.

An economist named Rajani Sinha said the world situation is still uncertain, so fuel prices could change again.

A business group called PHDCCI said manufacturing remains strong and hopes interest rates stay steady so companies can borrow at stable costs.

Overall, experts believe wholesale prices will keep rising but may gradually moderate in the coming months.

Key facts

WPI Inflation (July)
9.78%
WPI Inflation (June)
9.87%
Fuel and Power Inflation (July)
20.05%
Fuel and Power Inflation (June)
27.41%
Food Inflation (July)
5.4%
Food Articles Inflation (July)
5.44%
Manufacturing Inflation (July)
8.29%
Manufactured Food Products Inflation
8.89%

Quotes

Rajeev Juneja

President of the PHDCCI

“"While the manufacturing sector continues to navigate through high input costs, the neutral stance of the recent monetary policy will support manufacturers by allowing for loans at stable interest rates."”
thehansindia.com
“"Overall, the immediate outlook is one of elevated but potentially moderating wholesale inflation."”
thehansindia.com

Sources

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