India's wholesale price index remained negative in July for the fourth month, showing that the wedge between rising consumer prices and falling wholesale prices persists. A difference in composition in the indices along with supply disruptions in some categories may be causing the divergence.
WPI inflation stood at -0.58% in July compared with -1.81% in June, according to data released by the Ministry of Commerce and Industry on Friday. A Bloomberg poll of 19 economists had estimated WPI inflation at -0.54%.
CPI inflation, released a day prior, rose to 6.93%, led by higher retail prices of food items and transportation.
WPI Inflation Internals
- In July, the primary articles inflation rose by 0.63% compared to -1.21% in June.
- Manufactured products inflation rose by 0.51% compared to 0.08% in June.
- Prices of food articles rose by 4.08% compared with a rise of 2.04% in the previous month.
- The index of non-food articles fell by 3.57% against a drop of 2.8% last month.
- The fuel and power index contracted 9.84% against a fall of 13.6% in June.
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