In a recent report released by the government, wholesale inflation in India fell to 2.04% in July, down from 3.36% in June. The Department for Promotion of Industry and Internal Trade (DPIIT) announced that the annual inflation rate based on the Wholesale Price Index (WPI) decreased to 2.04% in July 2024. The inflation rate for Primary Articles dropped to 3.08% in July, while the inflation rate for Fuel & Power increased to 1.72%. The Manufactured Products group saw an increase in inflation to 1.58% in July.
This decline in wholesale inflation aligns with the recent retail inflation data, which hit a 5-year low of 3.54% in July. The Reserve Bank of India (RBI), which considers retail inflation for monetary policy decisions, maintained the repo rate at 6.5% in its August review. This consistent approach aims to stabilize the economy amidst fluctuating inflation rates.
Overall, the decrease in wholesale inflation signifies positive economic trends, giving hope for stable prices and sustainable growth in the coming months.
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