India’s July Wholesale Inflation Falls 0.58%, Food Prices Soar

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(Photo: The Quint)

Sequentially higher food prices accelerated India's annual rate of inflation based on wholesale prices to (-) 0.58 percent in July from (-) 1.81 percent in June, official data showed on Friday, 14 August.

However, on a year-on-year (YoY) basis, the Wholesale Price Index (WPI) data furnished by the Ministry of Commerce and Industry showed a decelerating trend during July 2020, as inflation had risen to 1.17 percent during the corresponding period of the previous year.

“The annual rate of inflation, based on monthly WPI, stood at (-0.58 percent)(Provisional) for the month of July, 2020 (over July, 2019) as compared to (1.17 percent) in the corresponding period of the previous year,” the Ministry said in its review of ‘Index Numbers of Wholesale Price in India’ for July.

“The WPI for July, 2020 have been compiled at a response rate of 69 percent, while the final figure for May, 2020 is based on the response rate of 86 percent. These provisional figures of WPI will undergo revision as per the final revision policy of WPI,” it said.

On a sequential basis, the expenses on primary articles, which constitute 22.62 percent of the WPI's total weightage, increased 0.63 percent from (-) 1.21 percent in June 2020.

Furthermore, the prices of food items increased at a faster rate of 4.32 percent from 3.05 percent.