Wholesale inflation levels in India improved in July as food inflation levels eased a bit recently. Official data from the government showed that wholesale price inflation in India slipped to 2.04 per cent in July. The figure stood at 3.36 per cent a month earlier in June 2024, marking a 16-month high for the country.


The Department for Promotion of Industry and Internal Trade (DPIIT) in a post on social media platform, X, formerly known as Twitter, said, “The annual rate of inflation based on WPI stood at 2.04 per cent in July 2024 as compared to 3.36 per cent in June, 2024."


Earlier this week, data showed that retail inflation in the country also improved to 3.54 per cent. This marked the lowest level seen in almost five years, as food inflation declined across the country. The last time inflation levels reduced to such an extent was in September 2019 when it slipped below 4 per cent.


This decline in wholesale inflation levels follows a similar pattern seen in economic data across the country. The retail inflation rate for rural regions in the country stood at 4.10 per cent in July, while urban India clocked a retail inflation rate of 2.98 per cent.


The inflation rate in the food basked touched 5.42 per cent in July, marking a major improvement against 9.36 per cent clocked in June 2024.


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RBI's Estimates


The Reserve Bank of India (RBI) in its latest Monetary Policy Committee (MPC) meeting, which concluded last week, gave an estimate for CPI inflation of 4.4 per cent for the second quarter in the 2024-25 fiscal year.  


Governor Shakitkanta Das in the meeting noted that the regulator cannot consistently ignore elevated food prices as the public perception around inflation is majorly related to costs of daily essentials.


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