India’s Wholesale Price Index (WPI) Sees Modest Inflation in July 2024

India’s wholesale price inflation, as measured by the WPI, registered a provisional rate of 2.04% in July 2024 compared to the same month last year. This positive inflation was primarily attributed to price increases in essential commodities such as food articles, food products, and mineral oils.

A closer look at the data reveals that the WPI index climbed by 0.84% month-on-month from June to July 2024. This uptick was largely driven by the primary articles category, which saw a 3.13% increase due to rising prices in food articles, crude petroleum, minerals, and non-food items.

Note: P: Provisional, #Monthly rate of change, based on month over month (M-o-M) WPI calculated over the preceding month

While the fuel and power sector experienced a modest 0.14% increase, primarily due to higher mineral oil costs, the manufactured products category witnessed a slight decline of 0.14%. This sector exhibited a mixed performance, with price increases in certain segments, such as chemicals, food products, and fabricated metal products, offset by decreases in others, including basic metals, non-metallic mineral products, and electronic goods.

The WPI Food Index, a crucial indicator of food inflation, rose by 3.55% year-on-year in July 2024, a deceleration from the 8.68% recorded in June. This suggests some cooling in food prices, although they remain a significant contributor to overall inflation.

It is important to note that these figures are provisional and subject to revision. The final WPI data for May 2024, with a response rate of 95.7%, indicated an inflation rate of 2.74%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.