Inflation Balancing
India's retail inflation remained under the crucial 4 per cent threshold for the second consecutive month in August, marking a positive turn for the country’s economic stability.
The wholesale inflation, as measured by the wholesale price index (WPI), cooled to a three-month low of 2.04% in July from a 16-month high of 3.36% in June, data released by the Ministry of Commerce and Industry said on Wednesday.
The positive rate of inflation in July 2024 is primarily due to increase in the prices of food articles, manufacture of food products, mineral oils, crude petroleum & natural gas, other manufacturing, etc.
The inflation in food prices stood at 3.45% during the month, compared to 10.87% in June.
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The month over month change in WPI index for the month of July, 2024 stood at 0.84% as compared to June, 2024.
As per the data, within food articles, pressure on factory gate prices eased significantly due to a contraction in the prices of vegetables (-8.93%) and egg, meat and fish (-1.59%).
There was also a slight deceleration in the prices of onions (88.77%), cereals (8.96%), paddy (10.98%) and pulses (20.27%).
The prices of potatoes (76.23%) and fruits (15.62%) accelerated during the month.
Manufactured products also saw a rise in inflation to 1.58% in July from 1.43% in June.
This was led by acceleration in the prices of manufactured beverages (2.14%), tobacco (2.31%), textiles (2.09%), wood products (3.53%) and pharmaceuticals (2.05%), among others.
Fuel & Power increased by 0.14% in July. Prices of mineral oils (1.09%) increased in July as compared to June.
Recently, the government data has said that the retail inflation in July fell to a near five-year low, as food prices eased from previous highs due to a base effect.
Year-on-year inflation rate based on All India Consumer Price Index (CPI) number is 3.54% (Provisional) for the month of July, 2024, which is the lowest in the last 59 months.
Corresponding inflation rate for rural and urban is 4.10% and 2.98%, respectively, the data said.
During the month of July 2024 there is a decline in inflation for all the groups. Significant decline is in the vegetables, fruits and spices subgroup.
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