In a positive development for the Indian economy, the annual rate of wholesale price inflation (WPI) declined to 2.04% in July 2024, down from 3.36% in June 2024, according to data released by the Office of Economic Adviser, Ministry of Commerce and Industry. This marks the lowest WPI inflation rate recorded so far in 2024.
The Department for promotion of industry and internal trade (DPIIT) in a post on X said "the annual rate of inflation based on WPI stood at 2.04 % in July 2024 as compared to 3.36 % in June, 2024."
The annual rate of inflation for Primary Articles of WPI stood at 3.08 per cent in July 2024, as compared to 8.80 per cent in June 2024. The annual rate of inflation for Fuel & Power of WPI increased to 1.72 per cent in July 2024, from 1.03 per cent in June 2024.
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The annual rate of inflation of the Manufactured Products group of WPI increased to 1.58 per cent in July 2024, from 1.43 per cent in June 2024, the DPIIT posted on X. The decline in July WPI was in line with the retail inflation data for the month. Retail inflation fell to a 5-year low of 3.54 per cent in July, data released earlier this week showed.
The Reserve Bank of India (RBI), which mainly takes into account retail inflation while framing the monetary policy, kept the benchmark interest rate or repo rate unchanged for the ninth consecutive time in its August monetary policy review at 6.5 per cent.