Our Bureau
New Delhi
India’s wholesale price inflation eased marginally to 9.78% in July from 9.87% in June, but remained above the 9% mark for the third consecutive month, underscoring continued price pressures across key segments of the economy. The data was released by the Ministry of Commerce and Industry on August 14.
The July reading was slightly below the 9.95% increase economists had expected, according to a Reuters poll. The moderation was driven largely by a sharp cooling in fuel and power inflation, which offset higher inflation in primary articles and manufactured products.
Fuel and power inflation fell significantly to 20.1% in July, with the mineral oils index declining to 113.2 from 122.9 in June. The index for crude petroleum and natural gas also declined during the month, providing some relief to overall wholesale price pressures.
However, price pressures remained evident elsewhere. Inflation in primary articles and manufactured products strengthened, suggesting that the easing in the headline figure was largely energy-driven rather than broad-based. The all-commodities Wholesale Price Index declined marginally to 110.0 in July from 110.2 in June.
The latest data comes amid rising consumer-price pressures as well. Retail inflation accelerated to 4.45% in July, driven largely by higher food prices, although it remained within the Reserve Bank of India’s 2-6% tolerance band.
The contrasting movements underline the uneven nature of inflationary pressures, with lower energy costs offering relief while food and other commodity prices continue to require close monitoring.