India’s wholesale inflation rate dropped to 2.04% in July, down from 3.36% in June, according to the Department for Promotion of Industry and Internal Trade (DPIIT). The significant decline was driven by a sharp reduction in the inflation rate for Primary Articles, which fell to 3.08% from 8.80% the previous month. However, inflation for the Fuel & Power category increased slightly to 1.72%, and the Manufactured Products group saw a modest rise to 1.58%.
This decrease in wholesale inflation is consistent with the retail inflation trend, which also decreased to a five-year low of 3.54% in July. The Reserve Bank of India (RBI) has kept the repo rate steady at 6.5% for nine consecutive reviews, emphasizing its focus on managing retail inflation in its monetary policy decisions.
