WPI inflation eases marginally to 9.78% in July; food, fuel and power prices cool

Wholesale price inflation eased marginally to 9.78% in July, as against 9.87% in June, on cooling in prices of fuel and power and food items.

This is the first time under the government’s wholesale price index (WPI)-based inflation data as per the new 2022-23 base year that inflation has dropped month-on-month.

The WPI has been on an upward trajectory since the beginning of this fiscal as the West Asia war and the resultant blockade of the Strait of Hormuz, through which the majority of crude oil is imported into India, pushed up global crude and fertiliser cost with spillover effect on food prices.

“Across groups, mineral oils (containing petroleum products), food articles, manufacture of basic metals, non-food articles, manufacture of food products, and manufacture of chemicals and chemical products have been major drivers of WPI inflation in July 2026,” the commerce and industry ministry said while releasing the monthly Wholesale Price Index (WPI) data on Friday.

Wholesale inflation in fuel and power dropped to 20.05% in July, as against 27.41% in June.

Inflation in food articles too eased to 5.44% in July, from 5.49% in June.

However, manufactured products saw an uptick in inflation at 8.29% in July, against 7.48% as in June.

Data released earlier this week showed India’s retail inflation rose to 4.45% in July from 4.38% in June, on high food prices.

The Reserve Bank’s monetary policy committee, earlier this month, kept benchmark policy rates unchanged at 5.25% and projected retail inflation at 5% for FY27, citing deficient and uneven south-west monsoon amidst El Niño conditions.