14 August,2026 01:40 PM IST | Mumbai | mid-day online correspondent
Representational Image. File pic.
Wholesale Price Index inflation eased slightly to 9.78 per cent in July, as against 9.87 per cent in June, as per the provisional data released by the government on Friday.
"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.
According to news agency PTI, this is the first occurrence where the government's wholesale price index (WPI)-based inflation data, as per the new 2022-23 base year, where the inflation has dropped month-on-month.
India is a major importer of crude oil and the WPI has been rising due to the West Asia conflict as a result of the spillover effect of the rising global crude oil prices.
Wholesale inflation in fuel and power declined to 20.05 per cent in July, compared to 27.41 per cent in June, and the wholesale inflation in food articles dipped to 5.44 per cent in July, from 5.49 per cent in June.
However, manufactured products prices increased as the wholesale inflation for this segment stood at 8.29 per cent in July, against 7.48 per cent as in June.
Data released earlier this week showed India's retail inflation or Consumer Price Index (CPI) increased marginally to 4.45 per cent in July from 4.38 per cent in June, on high food prices.
This inflation is within the Reserve Bank of India's (RBI) tolerance band of 2 to 6 per cent. In its monetary policy earlier this month, the apex bank kept the key lending rate (repo rate) unchanged at 5.25 per cent and projected retail inflation at 5 per cent for FY27,amid unfavourable monsoon conditions.
The government also revised the WPI inflation for May to 9.88 per cent as per the final estimate from the earlier provisional estimate of 9.68 per cent.
Inflation is the continuous increase of prices of goods and services over time in an economy. This affects the purchasing power of money. This means that over time you buy less for the same amount of money.
If the input cost increases, the prices of goods and services increase. With rising crude oil prices, the input and transportation costs increase, and thus, the prices of products or services may increase.
Prices can also increase if demand is higher than supply. For example, if there is an adverse monsoon effect (a deficit or excess rainfall that can cause droughts or floods), then the agricultural produce may become limited. As the availability of fruits and vegetables is less while demand remains high, it leads to an increase in prices.
When inflation rises sharply and suddenly, it impacts consumers negatively as the cost of goods and services increases but incomes do not increase proportionately.
(With inputs from PTI)
