Not food but fuel costs save the day: July WPI eases to 5-month low at 5.19%

India’s wholesale price inflation in July eased to a five-month low of 5.19 percent, helped mainly by a moderation in fuel costs, government data showed on Thursday.

The rise in the wholesale price index (WPI) compared with a 5.10 percent year-on-year jump forecast by economists in a Reuters poll. In June, wholesale prices rose 5.43 percent year-on-year, their slowest pace in four months.

[caption id=“attachment_93635” align=“aligncenter” width=“471”]  Source: Mospi[/caption]

The reading for May WPI inflation was revised to 6.18 percent from 6.01 percent earlier.

Inflation in the fuel and power category, was down at 7.40 per cent from the previous month.

The Reserve Bank in its monetary policy review last week had cautioned that continued uncertainty over monsoon could stoke food inflation, but expressed the hope that government policies will improve supplies in the coming months. Retail inflation data for July, released earlier this week, showed a marginal inch up to 7.96 percent.

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Agencies