India's wholesale inflation eases to 9.78% in July from 9.87% in June

India's wholesale inflation eased to 9.78% year-on-year in July, down from 9.87% in June, according to the latest data released by the commerce ministry. This marks the lowest inflation rate under the new wholesale price index (WPI) series, which is based on 2022-23 as the base year. The data comes after retail inflation rose to 4.45% in July, with food prices putting pressure on consumer prices.

Fuel and power prices drove wholesale inflation, with an inflation rate of 20.05% in July, down from 27.41% in June. Primary articles and manufactured products followed with inflation rates of 8.52% and 8.29%, respectively. The government attributed the pressure on wholesale inflation to sectors such as mineral oils, food articles, basic metals, and chemical products.

The revised WPI series, introduced in June, includes 957 items, up from 697 earlier, and incorporates new energy sources like solar and wind power. The weights of major groups have also changed, with fuel and power accounting for 14.1% of the index, primary articles at 22.8%, and manufactured products at 63.1%.