Wholesale price inflation declined slightly to 9.78 percent in July from 9.87 percent in June, driven by lower costs in fuel, power and food items. This marks the first month-on-month drop in the wholesale price index under the revised 2022-23 base year. The index had risen earlier in the fiscal year due to the West Asia conflict and disruptions at the Strait of Hormuz, which increased imported crude oil and fertilizer expenses and affected food prices. Major contributors to July inflation included mineral oils, food articles, basic metals, non-food items, food products and chemicals, according to the commerce ministry. Fuel and power inflation fell to 20.05 percent from 27.41 percent, while food article inflation eased to 5.44 percent from 5.49 percent. Manufactured products inflation rose to 8.29 percent from 7.48 percent. Separate data showed retail inflation increased to 4.45 percent from 4.38 percent. The Reserve Bank kept policy rates steady at 5.25 percent and forecast 5 percent retail inflation for the fiscal year amid monsoon concerns.
