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India WPI inflation dips to 5-month low
August 14, 2014, 7:55 am

Potato and fruits prices shot up 46.41 per cent and 31.71 per cent respectively in July [AP]

Potato and fruits prices shot up 46.41 per cent and 31.71 per cent respectively in July [AP]

India’s wholesale price inflation dipped to a five month low of 5.19 per cent in July mainly on account of decline in prices of some food articles, vegetables and protein rich items. It was at 5.43 per cent last month and 5.84 per cent in July 2013.

Inflation in the overall food articles basket, which account for 14 per cent of the total Wholesale Price Index (WPI), stood at 8.43 per cent. It was at 8.14 per cent in June.

However, potato and fruits prices shot up 46.41 per cent and 31.71 per cent respectively in July. Rate of price rise in milk was at 10.46 per cent. Indian Prime Minister Narendra Modi, elected in May amid anger over rising prices, has vowed to make controlling inflation a priority for the new government.

Inflation in the egg, meat and fish category stood at 2.71 per cent in July as against 10.27 per cent in the previous month.

Inflation in the manufactured products was at 3.67 per cent, and non-food articles, which include fibre, oil seeds and minerals, at 3.32 per cent.

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

The WPI inflation data was revised upwards for May to 6.18 per cent, from 6.01 per cent as per provisional estimates.

Below-normal rainfall, at 17 per cent below average as of August 11, according to the Indian Meteorological Department, could threaten the inflation scales.

India’s Central 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.

India’s consumer-price inflation however rose 7.96 per cent in July from a year earlier, India’s Statistics Ministry said in New Delhi on Tuesday.

 

Source: Agencies

One Response to India WPI inflation dips to 5-month low

  1. dee Reply

    August 14, 2014 at 10:04 pm

    why is india doing so poorly compared to other brics nations? especially compare to china since they are neighbors.

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