India's wholesale inflation edges down to -0.58% in July from -0.13% in June
inflation
edged down to -0.58% in July from -0.13% in June, as per government data released on Thursday.
A Reuters poll of economists had projected wholesale price index (WPI)-based inflation to contract further to -0.30% in July.
Despite uneven monsoons, a strong spring harvest has helped India keep a lid on food prices, extending the country's longest disinflationary streak in more than a decade.
India's retail inflation dropped to an over eight-year low of 1.55% in July, aided by a sharp cooling in food prices, according to government data released this week, according to government data earlier this week. This was the first time in more than six years that inflation fell below the
Reserve Bank of India
's (RBI) 2–6% tolerance band, and it marked the lowest year-on-year rate since June 2017.
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Retail inflation eases to over 8-year low of 1.55% in July aided by cooling food prices
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RBI's inflation outlook
The central bank's MPC last week said that inflation is estimated to go up during the last quarter of FY26, as food prices remain volatile, especially vegetable prices.
While the geopolitical uncertainties have abated, global trade marked by incoming tariffs continues to weigh in, the RBI noted.
For the full year FY26, the RBI has projected headline inflation at 3.1%, lower than the 3.70% forecast made in June. However, the CPI is expected to stand at 4.9% in first quarter of FY27, breaching the apex bank's 4% target.
Quarter-wise estimates are: 2.1% in Q2, 3.1% in Q3-, and 4.4% in Q4. The central bank maintained that risks to the outlook are 'evenly balanced.' The RBI MPC also noted that the core inflation has remained steady at 4%.
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