Wholesale Inflation Drops to 2.04% in July: Government Data

The country's wholesale inflation declined to 2.04% in July from 3.36% in June, according to official data. The Department for Promotion of Industry and Internal Trade highlighted changes across various sectors in the Wholesale Price Index (WPI). Retail inflation also saw a significant reduction, dropping to a 5-year low of 3.54% in July.

In a significant economic development, the country's wholesale inflation has dropped to 2.04% in July, down from 3.36% in June, according to data released on Wednesday by the government.

The figures from the Department for Promotion of Industry and Internal Trade (DPIIT) reflect variations in the Wholesale Price Index (WPI) across different sectors. The annual rate of inflation for Primary Articles decreased sharply, while there was a slight increase for both Fuel & Power and Manufactured Products.

This decline aligns with a notable drop in retail inflation, which fell to a 5-year low of 3.54% in July. Despite these changes in inflation rates, the Reserve Bank of India (RBI) has kept the benchmark interest rate unchanged at 6.5% for the ninth consecutive time in its August policy review.

(With inputs from agencies.)