Latest news with #WPI-based
Hans India
2 days ago
- Business
- Hans India
WPI inflation hovering in negative zone
New Delhi: Wholesale price inflation (WPI) stayed in negative territory for the second consecutive month at (-) 0.58 per cent in July, as prices of food articles and fuel saw deflation, even though prices of manufactured items increased, government data showed on Thursday. WPI-based inflation was (-) 0.13 per cent in June. It was 2.10 per cent in July last year. '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.
News18
2 days ago
- Business
- News18
WPI inflation declines to 2-year low of (-) 0.58 pc in July
Agency: PTI New Delhi, Aug 14 (PTI) Wholesale price inflation declined to a 2-year low of (-) 0.58 per cent in July, as deflation in food and fuel kept WPI in the negative zone for the second consecutive month, government data released on Thursday showed. Experts, however, projected WPI inflation to move back into positive territory in August, as base effects fade and seasonal price increases continue. WPI-based inflation was 2.10 per cent in July last year, and (-) 0.13 per cent in June. 'Negative rate of inflation in July 2025 is primarily due to a decrease in prices of food articles, mineral oils, crude petroleum & natural gas, manufacture of basic metals, etc," the industry ministry said in a statement. According to WPI data, deflation in food articles widened to 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. Fuel and power saw a negative inflation or deflation of 2.43 per cent in July, as against 2.65 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. Barclays in a research note said that July wholesale price inflation was driven by lower food and energy prices. 'The continued negative print in headline in year-on-year terms despite the month-on-month rise in wholesale prices is explained by base effects," Barclays said. The Reserve Bank of India (RBI), which takes into account retail inflation to decide on monetary policy, 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. ICRA Senior Economist Rahul Agrawal said the deflation in wholesale inflation was largely driven by the food segment, which witnessed a larger year-on-year contraction, led by vegetables, pulses, and eggs, meat & fish. 'Similar to the CPI, the WPI is also likely to have bottomed out in July 2025. Looking ahead, ICRA expects the headline WPI to re-enter the inflationary territory in August 2025, after a gap of two months, amid the hardening in YoY prints for food and crude oil so far, depreciation in the USD/INR pair, as well as an unfavourable base," he said. Besides, heavy rains could push up perishable prices sharply in the second half of August, and remain a key monitorable, Agrawal said. Bank of Baroda Economist Sonal Badhan said going forward, as uncertainties remain regarding US sanctions on importers of Russian oil and status of a ceasefire deal between Russia and Ukraine also remains in limbo, oil prices are noting some upward pressure. 'However, renewed tariff-related tensions are set to exert downward pressure on commodity prices as global growth prospects weaken. As a result, we expect WPI to remain contained in the coming months," Badhan said. PHDCCI President Hemant Jain said 'going forward, the moderation in prices of food articles and a favourable progress in the southwest monsoon will bolster agricultural activity boosting economic growth". PTI JD DRR view comments First Published: 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.
India.com
2 days ago
- Business
- India.com
India's WPI Inflation Falls To 2-Year Low In July As Food Prices Fall
New Delhi: 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.
Hans India
2 days ago
- Business
- 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.
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Business Standard
2 days ago
- Business
- Business Standard
WPI inflation remains negative for second month at (-) 0.58% in July
Wholesale price inflation (WPI) stayed in negative territory for the second consecutive month at (-) 0.58 per cent in July, as prices of food articles and fuel saw deflation, even though prices of manufactured items increased, government data showed on Thursday. WPI-based inflation was (-) 0.13 per cent in June. It was 2.10 per cent in July last year. "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.
