WPI inflation hovering in negative zone
'Negative rate of inflation in July 2025 is primarily due to decrease in prices of food articles, mineral oils, crude petroleum & natural gas, manufacture of basic metals, etc,' the industry ministry said in a statement.
As per WPI data, food articles saw a deflation of 6.29 per cent in July, as against a deflation of 3.75 per cent in June, with vegetables witnessing a sharp drop. Deflation in vegetables was 28.96 per cent in July, compared to 22.65 per cent in June. In the case of manufactured products, inflation was higher at 2.05 per cent in July, as against 1.97 per cent in the month before. Fuel and power saw a negative inflation or deflation of 2.43 per cent in July, as against 2.65 per cent in June. The Reserve Bank of India (RBI), which takes into account retail inflation, had kept benchmark policy rates unchanged at 5.5 per cent earlier this month. The retail inflation in July dropped to an 8-year low of 1.55 per cent.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
12 minutes ago
- Mint
How Brazil's Sugar Powerhouse Raízen Became a Penny Stock
It was just another Tuesday morning in the heart of Brazil's sugarcane region when workers in Sertãozinho, a small town four hours away from Sao Paulo, heard the news. Almost everyone working at Raízen SA's Santa Elisa sugar and ethanol mill was losing their job. The facility, which had propelled the town's economy for almost 90 years, was idling work, indefinitely. 'I felt numb, I looked into people's eyes and I saw sadness in them,' Natã Nobrega, a technician that worked at the mill for two decades, said in an interview last month. 'Nobody expected it.' The July closing of Santa Elisa, once the largest mill in top sugar producer Brazil, was a warning sign: its owner Raízen, a joint venture between Brazil's Cosan SA and London-based Shell Plc, was in trouble. It was a stark change in fortunes for a company that went public just four years ago as Latin America's largest share sale of 2021. On Thursday, Chief Financial Officer Rafael Bergman delivered a bombshell: Raízen was 'in active talks' for a capital injection after its debt ballooned 56% in the past year and the company burned through a 7-billion-real cash pile in the three months ended June 30. The shares tumbled as much as 15% in Sao Paulo after the news to a record low of just 1.02 reais . That's the stock's biggest slump since the company went public. It's now at a fraction of the record 7.60 reais it reached on its first day of trading. Raising capital was until now seen by most analysts as a remote possibility. After all, Cosan is controlled by Brazilian billionaire Rubens Ometto, who has historically liked to keep a firm grip on his businesses — fresh capital would dilute his power and influence. Cosan executives on Friday said the Brazilian holding company is now open to outside investment in Raízen. 'Bringing in a strategic partner is an option we do like,' Chief Executive Officer Marcelo Martins said. A new partner, he added, needs to be someone whose view about the business is 'in line with ours and Shell's strategy.' While lowering debt could 'clear the way for investors to regain interest in the stock,' for now the move means current shareholders will see their ownership diluted, analysts at UBS BB led by Matheus Enfeldt said in a report on Thursday. When Raízen was formed in 2011, Shell and Cosan painted a bright outlook, estimating the venture could reach $12 billion in value. Indeed, the IPO valued it at $14.3 billion. To meet its ambitious growth plans, Raízen's spending almost doubled in the past four years, while rising interest rates sent its debt surging. At the end of June, net debt stood at 49 billion reais, up from 31.6 billion a year earlier. To make matters worse, Raízen acquired Louis Dreyfus Holding BV's Biosev, a Brazilian sugar business that was bleeding cash and whose mills weren't always the most efficient. Raízen's bets on second-generation biofuels, traceable sugar and sustainable aviation fuel haven't paid off. The company, now barely worth $2 billion, is pulling the brakes on plans to make ethanol from cane residuals and its hopes to export ethanol to the US to make sustainable aviation fuel were hit with 50% tariffs. While years of low sugar and ethanol prices have also hurt the broader industry, Raízen has underperformed peers including Sao Martinho SA and Jalles Machado SA. In a bid to stay afloat, Raízen went through a management overhaul last year, naming Nelson Roseira Gomes Neto, a former Cosan executive, as the top boss. It also began to sell assets, having already disposed of its Leme sugar mill in Piracicaba, two hours away from Sao Paulo, and 55 units that generated electricity from renewable sources. There's more to come. Asset divestments so far accounted for the equivalent of just 7% of the net debt, Chief Executive Officer Gomes Neto said. The company is also in talks to sell mills in Mato Grosso do Sul state and of the group's oil refinery and gas stations in Argentina, Bloomberg reported. 'The divestment journey will continue,' Bergman said on Thursday. 'We acknowledge that this is not a short-term journey.' It may also get a new investor, with Lazard advising Shell and Itau advising Cosan, Valor Economico newspaper reported on Thursday. The new partner is expected to bring liquidity to the company while plans to sell assets aren't fully completed. In Sertãozinho, as many as 1,200 people would end up losing their job at the Santa Elisa mill, a unit Raízen acquired as part of the Biosev deal. It wasn't how people in town expected things to go. 'I thought it could one day go back to what it used to be,' said Maurilio Biagi Filho, a former executive who ran Santa Elisa — a mill his grandfather acquired in 1936 — for years before the sale to Dreyfus. 'But economic factors outweigh any other scenario.' With assistance from Leda Alvim and Gerson Freitas Jr.. This article was generated from an automated news agency feed without modifications to text.
News18
20 minutes ago
- News18
Pavna Industries, Taiwans SMC form JV to boost EV tech in India
Lucknow, Aug 15 (PTI) Uttar Pradesh-based Pavna Industries on Friday said it has entered into a joint venture with Taiwan-based SmartChip Microelectronic Corporation (SMC) to boost EV technology in India and grow into new high-growth markets. Pavna Industries will hold 80 per cent equity in the JV, while SMC will have a 20 per cent stake. Under the agreement, Pavna will bring its operational, manufacturing, and procurement expertise, and its deep understanding of the Indian automotive market, to oversee and manage the JV's operations, the company said in a statement issued here. 'Pavna Industries has entered into a joint venture agreement with SmartChip Microelectronic Corporation (SMC), which will offer to undertake and carry on the business of inter alia making electronic components for the automobile industry (ICE and EV) and for other industries like hardware for cupboard/door locks etc. in residential/ commercial industries, and medical, among others," the company said. Swapnil Jain, Managing Director, Pavna Industries Limited, said, 'By merging Pavna's manufacturing and market capabilities with SMC's state-of-the-art electronics knowledge, we expect to speed up the penetration of EV technologies in India as well as grow into new high-growth markets. With this partnership, we will also further enhance our capacity to serve domestic and global markets with innovative, dependable, and sustainable solutions". PTI KIS BAL BAL BAL view comments First Published: August 15, 2025, 21:15 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hans India
42 minutes ago
- Hans India
Centre to update WPI, IIP; announces launch of new Producer Price Index
New Delhi: The Centre announced that a nationwide survey will be done to update the country's Wholesale Price Index (WPI), introduce a Producer Price Index (PPI), and revise the Index of Industrial Production (IIP) to the 2022-23 base year. The move aims to make inflation and industrial output measures more representative of today's manufacturing sector. The WPI tracks price changes of goods at the wholesale level, focussing on bulk transactions between businesses. The current base year, 2011-12, is outdated due to significant economic changes over the past decade. PPI tracks prices received by service providers or manufacturers before their goods reach the wholesale market. IIP measures industrial output in sectors like manufacturing, mining, and electricity. Revision of its base year will ensure it reflects current industrial activity, addressing outdated production patterns in the 2011-12 base year. The Ministry of Commerce and Industry announced that the exercise will start in the month of August, and data for the new series will be compiled from April 2022. As the manufacturing sector has evolved significantly in the past decade, key economic indicators may become outdated without an update. Analysts say that this step will help India align with international statistical standards. The National Statistical Office's Field Operations Division is authorised to survey the Collection of Statistics Act. As many as 26 Statistics Officers will lead regional offices, supported by officials authorised to inspect GST invoices, e-way bills, balance sheets, and other records to verify submissions. 'The drive will cover all states and union territories, targeting organised manufacturing establishments engaged in activities such as manufacturing, repair, gas, water supply, and cold storage,' an official release said. Owners or managers of factories or establishments registered under laws such as the Factories Act, Companies Act, Shops and Commercial Establishments Act, and other statutory bodies can be asked to provide data. If separate details for each unit are unavailable, combined information for all units under the same management in a state or union territory can be submitted. Statistics Officers can give respondents up to a month, or a period deemed suitable, to submit information, including via an online portal. Enforcement provisions include adjudicating officers who can impose penalties for non-compliance, and an appellate authority for grievance redressal. The data will be processed by the Office of the Economic Adviser in the Department for Promotion of Industry and Internal Trade (DPIIT).
