India July WPI inflation eases marginally to 9.78% as fuel price pressure moderates

India’s wholesale price inflation eased marginally to 9.78% in July from 9.87% in June as a moderation in fuel and power inflation offset stronger price pressures in primary and manufactured products, government data showed Friday.

The Wholesale Price Index, based on the new 2022-23 base year, stood at 110.0 in July compared with 110.2 in June.

Fuel and power inflation slowed to 20.05% in July from 27.41% a month earlier, with the group's index falling to 105.4 from 111.1. Mineral oil inflation remained elevated at 32.4%, though it moderated from 46.48% in June. Crude petroleum and natural gas inflation eased to 26.99% from 34.75%.

In contrast, primary articles inflation accelerated to 8.52% from 7.0% in June, while manufactured products inflation rose to 8.29% from 7.48%.

Within primary articles, non-food articles inflation surged to 17.66% from 11.07%, while minerals inflation increased to 13.28% from 9.45%. Food articles inflation was broadly steady at 5.44% compared with 5.49% in June.

The broader WPI Food Index inflation rose to 6.65% in July from 6.14% in June. The index combines food articles under primary articles and manufactured food products.

Manufactured food products inflation increased to 8.89% from 7.2%, while textiles inflation accelerated to 12.8% from 10.85%. Basic metals inflation remained elevated at 12.56%, compared with 12.31% a month earlier, while chemicals and chemical products inflation rose to 13.12% from 12.78%.

The government said mineral oils, food articles, basic metals, non-food articles, manufactured food products and chemicals were among the major drivers of wholesale inflation during July.

For April-July, cumulative WPI inflation was 9.47%, compared with a 0.2% decline in the corresponding period a year earlier. Fuel and power inflation during the four-month period was 25.8%, while manufactured products inflation was 7.48% and primary articles inflation 6.19%.

Separately, India's provisional Output Producer Price Index inflation was unchanged at 9.57%.

The final WPI inflation estimate for May was revised upward to 9.88% from the provisional estimate of 9.68%.