The wholesale price-based inflation eased to a five-month low of 13.93 per cent in July on easing prices of food articles and manufactured products.
The WPI-based inflation softened for the second consecutive month in July, raising hopes of further decline in wholesale prices in the months to come.
The Wholesale Price Index-based inflation, after scaling a record high of 15.88 per cent in May, declined to 15.18 per cent in June. It was 13.43 per cent in February.
It was 11.57 per cent in July last year.
The WPI inflation continued its declining trend for the second month in July but remained in double-digits for the 16th consecutive month beginning April last year.
Inflation in food articles in July eased to 10.77 per cent from 14.39 per cent in June.
The rate of price rise in vegetables declined substantially to 18.25 per cent in July against 56.75 per cent in the previous month.
In the fuel and power basket, inflation was 43.75 per cent in July compared to 40.38 per cent in the last month.
Inflation in manufactured products and oil seeds was 8.16 per cent and (-) 4.06 per cent, respectively.
CRCL LLP CEO and Managing Partner DRE Reddy said higher crude oil prices and input costs still weigh on the producers and pass-through has resulted in pushing the retail inflation higher.
"The global economy is recovering as we witness an increase in demand for metals, oils, crude and fertilisers. Moving forward, as the crude prices soften in the summer season and supply issues getting resolved will help ease WPI inflation in the next few months," Reddy added.
The Reserve Bank of India mainly looks at retail inflation to frame monetary policy.
Retail inflation remained above the Reserve Bank's comfort level for the seventh month in a row and was 6.71 per cent in July.
To tame stubbornly high inflation, the RBI has hiked the key interest rate three times this year to 5.40 per cent.
The central bank had projected retail inflation to average 6.7 per cent in 2022-23.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app