Wholesale Inflation Stays In Negative For Fourth Month At (-) 1.36% In July

New Delhi: The wholesale price-based inflation remained in the negative territory for the fourth straight month in July at (-)1.36 percent on easing prices of fuel, even though food articles turned costlier. The wholesale price index (WPI) based inflation rate has been in the negative since April and was (-)4.12 percent in June. In July last year it was 14.07 percent.

Inflation in food articles skyrocketed 14.25 percent in July against 1.32 percent in June. (Also Read: Sangram Hoga? Musk Ready To Fight At Zuckerberg’s Home, Meta Founder Says...)

"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 said on Monday.

Fuel and power basket inflation eased to (-)12.79 percent in July from (-)12.63 percent in June. In manufactured products, the inflation rate was (-)2.51 percent as against (-)2.71 percent in June.

The RBI last week kept interest rates unchanged at 6.5 percent for the third straight meeting but signalled tighter policy if food prices drive inflation higher.

"The job on inflation is still not done," RBI Governor Shaktikanta Das had said. "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 current financial year ending March 2024 to 5.4 percent from 5.1 percent earlier, citing pressures from food prices.

The central bank takes into account retail or consumer price index-based inflation for formulating monetary policy. Retail inflation data for July is scheduled to be released later in the day.