WPI Inflation In Negative For 4 Months In Row, Contracts To 1.36% In July 2023

India's wholesale price index (WPI) inflation contracted to 1.36% in July 2023. This would become the fourth straight month where WPI has stayed in negative territory. In the previous month, WPI deflated to 4.12%. The fall in inflation is due to lower prices of mineral oils, basic metals, chemical & chemical products, textiles and food products.

As per the Ministry of Commerce & Industry, the WPI inflation index stood at 151.9 in July 2023 as against 149 in June 2023.

The ministry said, "decline in the rate of inflation in July, 2023 is primarily contributed by fall in prices of mineral oils, basic metals, chemical & chemical products, textiles and food products."

In July 2023, the primary articles which hold 22.62% weightage in WPI recorded an inflation rate of 7.57% versus -2.87% in June, while the fuel & power commodities (holding 13.15% weightage in WPI) registered a deflation of -12.79% widening from -12.63% in the previous month.

Manufactured Products, which hold the highest weightage in WPI at 64.23%, stood at -2.51% in July 2023, easing from -2.71% in June 2023.

Food index inflation came in at 7.75% in July versus -1.24% in June.

The month over month change in WPI index for the month of July, 2023 stood at 1.95 % as compared to June, 2023, the ministry said.

Here are the details of commodities-wise performance in July 2023:

Primary Articles: Prices of Food Articles (10.55%), Crude Petroleum & Natural Gas (4.40%) and Non-food Articles (2.27%) increased in July as compared to June. Prices of Minerals (-3.17%) declined in July as compared to June.

Fuel & Power: Prices of Coal (0.07%) increased in July as compared to June. Prices of Electricity (-0.45%) and Mineral Oils (-0.65%) declined in July as compared to June.

Manufactured Products: Out of the 22 NIC two-digit groups for manufactured products, 11 groups have witnessed an increase in prices whereas 10 groups have witnessed a decrease in prices. The increase in price is mainly contributed by food products; machinery & equipment; computer, electronic & optical products; other non-metallic mineral products and electrical equipment etc. Some of the groups that have witnessed a decrease in prices are basic metals; chemical and chemical products; textiles; other manufacturing; paper & paper products etc. in July, 2023 as compared to June, 2023.

The WPI for July 2023 have been compiled at a weighted response rate of 85.2%.

DPIIT releases index numbers of wholesale price in India on monthly basis on 14th of every month (or next working day) with a time lag of two weeks of the reference month, and the index numbers is compiled with data received from institutional sources and selected manufacturing units across the country.