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WPI inflation slows to 5.09% in July
Why in the news ?
- According to official data released on 14th August, Inflation at the wholesale level slowed to 5.09% in July largely due to a cooling down of food inflation.
Details
- The Wholesale Price Index (WPI) based inflation of July was lower than June’s 5.77%.
- The primary articles category saw growth slowing significantly to 1.73%, from 5.3% a month earlier. This was largely due to a 2.16 contraction in food prices, compared with June’s growth of 1.8%.
- Among others in the basket, vegetable prices fell by 14.07 per cent during the reported month as compared to a growth of 8.12 per cent in June.
- Likewise, there was an 8.81 per cent fall in wholesale prices of fruits in July as against a rise of 3.87 per cent in the preceding month.
- In pulses category, inflation stood at (-) 17.03 per cent as against (-) 20.23 per cent.
- The retail inflation eased to a nine-month low of 4.17 per cent in July, from 4.9 per cent in June, on account of cheaper food articles.
Wholesale Price Index (WPI)
- WPI index reflects average price changes of goods that are bought and sold in the wholesale market.
- Wholesale price indexes report monthly to show the average price changes of goods sold in bulk, and they are a group of the indicators that follow growth in the economy.
- WPI includes all the manufactured products and CPI includes food and services part.
Source
The Hindu.