Retail inflation eases to 8-year low of 1.55% in July
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
30 minutes ago
- Business Standard
WPI inflation stays negative for 2nd month in July as food, fuel prices dip
India's factory-gate inflation, based on the wholesale price index (WPI), fell to a two-year low of -0.58 per cent in July, staying in negative territory for the second consecutive month on the back of falling food and fuel prices, according to data released by the Ministry of Commerce and Industry on Thursday. Manufactured products, however, saw faster price increases during the month. The last time the WPI was this low was in July 2023, when it recorded deflation of -1.23 per cent. Data showed that prices of primary food articles (-6.3 per cent) fell for the third straight month, led by sharp declines in onion (-44.4 per cent), potato (-41.3 per cent), vegetables (-28.9 per cent), pulses (-15.12 per cent), fruits (-2.65 per cent), and protein-rich items like eggs, meat, and fish (-1.09 per cent). Wheat prices rose 4.4 per cent, while oilseeds saw a significant spike of 9.77 per cent. Fuel and power prices declined 2.43 per cent in July as lower global commodity prices, especially for mineral oils, kept petrol (-5.7 per cent) and high-speed diesel (-4.3 per cent) in deflation for the 14th and 27th consecutive month, respectively. Cooking gas prices, however, increased 1.23 per cent. Prices of manufactured products—which carry a 64 per cent weight in the index—rose 2.05 per cent in July, driven by apparel (2.5 per cent), leather (2.57 per cent), non-metallic mineral products (2.7 per cent), and cement and plaster (3.4 per cent). While price growth for manufactured animal oils and fats slowed, it remained in double digits at 22.04 per cent. Price increases for other manufactured items such as food products (6.7 per cent), paper (0.94 per cent), chemicals (0.22 per cent), and pharmaceuticals (0.9 per cent) also eased. Rahul Agrawal, Senior Economist at ICRA Ratings, said the July deflation was largely driven by the food segment, even as prices in all other categories firmed compared to the previous month. 'Similar to the CPI, the WPI is also likely to have bottomed out in July 2025. Looking ahead, we expect the headline WPI to re-enter inflationary territory in August after a gap of two months, amid hardening food and crude oil prices, rupee depreciation, and an unfavourable base. Heavy rains could push up perishable prices sharply in the second half of August, and this will be a key monitorable,' he said. The fall in WPI inflation comes days after India's retail inflation eased to an eight-year low of 1.55 per cent in July, helped by deeper deflation in several food categories even as edible oil prices surged at their fastest pace since the start of the Russia–Ukraine conflict in early 2022.
News18
30 minutes ago
- News18
Trump ‘To Give Money-Making Chance' To Putin For Ukraine Truce As Russia ‘Readies Nuke That Can…'
Trump 'To Give Money-Making Chance' To Putin For Ukraine Truce As Russia 'Readies Nuke That Can…'|4K Last Updated: Crux Videos Russia appears to be preparing to test its new nuclear-armed, nuclear-powered cruise missile, as per two US researchers and a Western security source cited by ReutersThe researchers and the security analyst reached this assessment by studying imagery reportedly taken in recent weeks until Aug. 12 by satellite firm, Planet LabsMeanwhile, Trump is preparing to offer Putin access to rare earth minerals to incentivise him to end the war in Ukraine, The Telegraph reported on Aug. 13The US president will reportedly arrive at the Alaska meeting with his Russian counterpart armed with a number of money-making opportunities for Putin 0:00 INTRO3:33 TRUMP TO LURE PUTIN TO UKRIANE TRUCE WITH SECRET DEAL?4:41 NOT NATO, US TO PROTECT POST-WAR UKRAINE?5:33 GERMANY PLEDGES NEW MILITARY AID TO UKRAINEn18oc_world n18oc_crux
Hans India
30 minutes ago
- Hans India
India's WPI inflation falls to 2-year low in July as food prices fall
India's annual rate of inflation based on the Wholesale Price Index (WPI) fell further in the negative zone to a two-year low of (-) 0.58 in July this year, compared to the same month of the previous year -- primarily due to a decrease in the prices of food articles and fuels such as petrol, diesel and natural gas, according to data released by the Commerce and Industry Ministry on Thursday. The WPI inflation for July is also lower than the -0.13 per cent that was recorded in the previous month of June. WPI-based inflation has been steadily easing since March and hit a 14-month low of 0.39 per cent in May. There was a 2.15 per cent decline in the food index while the cost of fuels such as petrol and diesel fell by 2.43 per cent during July compared to the same month of the previous year, resulting in the inflation rate turning negative. The decline in WPI inflation is also expected to lead to further easing of retail inflation as the drop in prices of bulk goods is passed on to the retail level and the decline in fuel prices leads to a drop in transport costs. Meanwhile, the country's inflation rate based on the Consumer Price Index (CPI) eased further to 1.55 per cent in July this year compared to the same month of the previous year as prices of food declined during the month. This is the lowest level of year-on-year retail inflation since June 2017, according to a statement issued by the Ministry of Statistics. The retail inflation in July was also lower by 55 basis points than the 2.1 per cent for the previous month of June this year which was the lowest level of retail inflation since January, 2019. Food Inflation in July this year fell into the negative zone at -1.76 per cent as prices declined compared to the same month of the previous year. The significant decline in headline inflation and food inflation during July, 2025 is mainly attributed to favourable base effect and to decline in inflation of pulses, vegetables, cereals, egg and sugar. The inflation rate also fell due to the decline in cost of transport and communication and education. Besides, there was a mild drop in housing inflation during the month. Meanwhile, the Reserve Bank (RBI) has pegged India's CPI inflation at 3.1 per cent for 2025-26 as the steady progress of the monsoon and robust kharif sowing are expected to keep food prices in check. RBI Governor Sanjay Malhotra recently said, 'The inflation outlook for 2025-26 has become more benign than expected in June. Large favourable base effects combined with steady progress of the southwest monsoon, healthy kharif sowing, adequate reservoir levels and comfortable buffer stocks of foodgrains have contributed to this moderation.' CPI inflation, however, is likely to edge up above 4 per cent by Q4:2025-26 and beyond, as unfavourable base effects, and demand side factors from policy actions come into play. Barring any major negative shock to input prices, core inflation is likely to remain moderately above 4 per cent during the year, he explained.
