The wholesale inflation rate dropped to 2.04% during the month of July.

New Delhi, 14th August 2024:
According to the latest government data released on Wednesday, the wholesale inflation rate in India has decreased to 2.04% in the month of July. This is a significant decline from the previous month's rate of 3.36%.
In a recent post on X, the Department for Promotion of Industry and Internal Trade (DPIIT) announced that the annual inflation rate based on the Wholesale Price Index (WPI) has dropped to 2.04% in July 2024, as compared to 3.36% in June 2024.
Breaking down the data, the annual inflation rate for primary articles of WPI stood at 3.08% in July 2024, a significant decrease from 8.80% in June 2024. However, the annual inflation rate for fuel and power of WPI increased to 1.72% in July 2024, compared to 1.03% in June 2024.
Furthermore, the DPIIT also reported that the annual inflation rate for manufactured products group of WPI has increased to 1.58% in July 2024, up from 1.43% in June 2024.
Interestingly, the decrease in WPI for the month of July is in line with the retail inflation data released earlier this week. The data showed that retail inflation has hit a 5-year low of 3.54% in July.
Taking this into consideration, the Reserve Bank of India (RBI) has decided to keep the benchmark interest rate or repo rate unchanged for the ninth consecutive time in its August monetary policy review, maintaining it at 6.5%. The RBI primarily takes into account the retail inflation rate while making decisions regarding monetary policy.
Overall, this decrease in wholesale and retail inflation rates is a positive sign for the economy and indicates a more stable and controlled market.

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