Country The wholesale inflation rate declined to 2.04 percent in July. The Wholesale Price Index (WPI) based inflation rate was 3.36 percent in June 2024. The Department of Promotion of Industry and Internal Trade (DPIIT) wrote on its official social media account, “The annual rate of inflation based on WPI was 2.04 percent in July 2024, while it was 3.36 percent in June 2024.
Inflation in primary products stood at 3.08 percent in July 2024
The annual rate of inflation of primary products of the Wholesale Price Index was 3.08 percent in July 2024, as against 8.80 percent in June 2024. The annual rate of inflation of fuel and electricity increased to 1.72 percent, as against 1.03 percent in June 2024. According to DPIIT, the annual rate of inflation of manufactured products of the Wholesale Price Index increased from 1.43 percent in June 2024 to 1.58 percent in July 2024.
Retail inflation also reached a 5-year low
The decline in the wholesale price index in July was in line with the retail inflation data for this month. According to data released earlier this week, retail inflation fell to a 5-year low of 3.54 percent in July. This is the first time in nearly 5 years that retail inflation has fallen below the Reserve Bank of India’s target of 4 percent. Inflation has remained below 6 percent since September 2023.
Retail inflation was 5.08 percent in June this year
The Consumer Price Index based retail inflation was 5.08 percent in June this year. Whereas it was 7.44 percent in July last year. The Reserve Bank of India mainly takes retail inflation into account while formulating monetary policy. In the monetary policy committee meeting held in August, the RBI did not change the repo rate for the 9th consecutive day and kept it at 6.5 percent.
With PTI inputs
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