New Delhi, 14 August (H.S.):

India's wholesale inflation eased marginally to 9.78 per cent in July from 9.87 per cent in June, amid softer prices of fuel and power as well as food items. Wholesale inflation has remained above the 9 per cent mark for the third consecutive month.

According to monthly data released by the Ministry of Commerce and Industry, mineral oils, including petroleum products, food articles, manufacture of basic metals, non-food articles, manufacture of food products, and manufacture of chemicals and chemical products were among the major factors influencing wholesale inflation in July.

Data showed that wholesale inflation in the Fuel and Power category declined sharply to 20.05 per cent in July from 27.41 per cent in June. Inflation in food articles also eased marginally to 5.44 per cent in July from 5.49 per cent in the previous month.

However, inflation in manufactured products increased to 8.29 per cent in July from 7.48 per cent in June.

Under the Wholesale Price Index (WPI) series based on the new 2022-23 base year introduced by the Ministry of Commerce and Industry, July marked the first month-on-month decline in wholesale inflation. According to the ministry, the West Asia crisis and the resulting disruption in the Strait of Hormuz pushed up the global cost of crude oil and fertilisers, which also affected food prices.

According to data released earlier this week, India's retail inflation rose to 4.45 per cent in July from 4.38 per cent in June, primarily due to an increase in food prices.

The Reserve Bank of India (RBI)'s Monetary Policy Committee, at its review meeting earlier this month, kept the policy repo rate unchanged at 5.25 per cent. The central bank has projected retail inflation at 5 per cent for the financial year 2026-27, citing the weak and uneven progress of the southwest monsoon.

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Hindusthan Samachar / Jun Sarkar