Wholesale Price Index (WPI)-based inflation remained in negative territory for the fourth consecutive month in July at (-)1.36 per cent on easing costs of gasoline, although meals articles turned costlier.
The inflation fee primarily based on the Wholesale Price Index (WPI) has remained negative since April, and was (-)4.12 per cent in June. In comparability, it was at 14.07 per cent in July final 12 months. Notably, the inflation fee for meals articles surged to 14.25 per cent in July, a vital enhance from the 1.32 per cent recorded in June.
“Decline in the rate of inflation in July, 2023 is primarily contributed by fall in prices of mineral oils, basic metals, chemical & chemical products, textiles and food products,” the Commerce and Industry Ministry stated on Monday.
In July, the inflation fee for the gasoline and energy class barely decreased to (-)12.79 per cent, from -(-)12.63 per cent in June. In manufactured merchandise, the inflation fee was (-)2.51 per cent in July, exhibiting a slight enchancment from the (-)2.71 per cent recorded in June. The Reserve Bank of India (RBI) final week maintained the rates of interest at 6.5 per cent for the third consecutive time, however signalled tighter coverage if meals costs drive inflation greater.
“The job on inflation is still not done,” RBI Governor Shaktikanta Das had stated. “Inflationary risks persist amidst volatile international food and energy prices, lingering geopolitical tensions and weather-related uncertainties.”
The RBI raised its inflation forecast for the present monetary 12 months ending March 2024 to five.4 per cent from 5.1 per cent earlier, citing pressures from meals costs.
The central financial institution takes under consideration retail or client value index primarily based inflation for formulating financial coverage. Retail inflation knowledge for July is scheduled to be launched later in the day.
(WIth PTI inputs)
