NEW DELHI: Wholesale inflation eased to 5.09 per cent in July on account of cheaper food articles, especially fruits and vegetables, government data showed on Tuesday. The wholesale price index (WPI) based inflation was recorded at 5.77 per cent in June. “Build-up inflation rate in the financial year so far was 2.92 per cent compared to a build-up rate of 0.62 per cent in the corresponding period of the previous year,” the Commerce and Industry Ministry said in its review statement.
The wholesale inflation in food articles category has gone down by 2.16 per cent in July as against a growth of 1.80 per cent in the previous month, data showed. The food article category has a weightage of 15.26 per cent in the WPI index.Also, vegetable prices fell by 14.07 per cent during the reported month as compared to a growth of 8.12 per cent in June. Likewise, there was an 8.81 per cent fall in wholesale prices of fruits in July as against a rise of 3.87 per cent in the preceding month.
In the pulses category, negative growth was recorded, as inflation stood at 17.03 per cent against 20.23 per cent in June. However, the cost of fuel and power category, which commands a 13.15 per cent weightage in the index, increased at a faster pace of 18.10 per cent from a growth of 16.18 per cent. The price of high-speed diesel rose by 22.84 per cent on a YoY basis while that of petrol climbed by 20.75 per cent and LPG by 31.68 per cent.On sequential basis, the expenses on primary articles, which constitute 22.62 per cent of the WPI’s total weightage inched up by 1.73 per cent, from an increase of 5.30 per cent in June 2018.
Respite in retail too
The retail inflation eased to a nine-month low of 4.17 per cent in July, from 4.9 per cent in June, on account of cheaper food articles, data showed on Monday