wholesale inflation in India cooled to a three-month low, primarily due to a decline in food prices. The wholesale price index (WPI), which measures the average change in selling prices received by domestic producers for their output, increased at a slower pace of 3.0% year-on-year compared to 3.8% in June. This deceleration marks the lowest rate of increase since April, indicating a cooling in inflationary pressures at the wholesale level.
Source:- news 18
The easing of inflation was largely attributed to a significant drop in food prices. Prices of essential food items such as vegetables, cereals, and pulses have seen a notable reduction, contributing to the overall decline in the WPI. The prices of vegetables, in particular, decreased sharply due to favorable weather conditions and improved supply chain efficiencies.
Source:- india today
Additionally, the moderation in inflation was supported by a slower rise in the prices of manufactured products and fuel. While the cost of fuel still remains a concern, its impact on overall wholesale inflation has lessened compared to previous months.
This cooling of wholesale inflation could have positive implications for retail inflation, as lower wholesale prices often translate into reduced costs for consumers. The Reserve Bank of India (RBI) might take this into consideration for its future monetary policy decisions. Analysts suggest that while the inflation outlook has improved, ongoing monitoring of global commodity prices and domestic supply conditions will be essential in managing inflationary trends.
Overall, the data for July signals a temporary reprieve from the rising inflationary pressures that have been affecting the Indian economy, offering some relief to both producers and consumers alike.
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