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WPI inflation remains negative at -0.58 in July, but food prices spike

1. In July retail inflation was at 6.93 per cent, as against 6.23 per cent in June.
2. Inflation in food articles during July stood at 4.08 per cent, as against 2.04 per cent in June.

SNS | New Delhi |

Country’s wholesale price index (WPI) fell (-) 0.58 per cent in July, even as food items turned costlier. This is the fourth consecutive month to witness a negative WPI, which highlights the wedge between rising consumer prices and falling wholesale prices persists.

WPI inflation in June was at (-) 1.81 per cent, while for the month of May and April it was (-) 3.37 per cent and (-) 1.57 per cent respectively, official data showed on Friday.

“The annual rate of inflation, based on monthly WPI (Wholesale Price Index), stood at (- 0.58 per cent) (provisional) for the month of July, 2020 as compared to 1.17 per cent during the corresponding month of the previous year,” the commerce and industry ministry said in a statement.

In July retail inflation was at 6.93 per cent, as against 6.23 per cent in June.

Manufactured products, however, witnessed inflation of 0.51 per cent in July, as against 0.08 per cent in June.

Inflation in food articles during July stood at 4.08 per cent, as against 2.04 per cent in June.

The index of non-food articles dropped by 3.57 per cent against a drop of 2.8 per cent in June.

However, fuel and power basket inflation fell 9.84 per cent in July, compared to 13.60 per cent in the previous month.

The RBI in its policy review last week, kept interest rates unchaged and said it sees an upside risk to inflation. The apex bank expects retail inflation to moderate in October-March period.