Business Economy

Wholesale inflation eases to 1.08% in July

Inflation at the wholesale level eased for the fourth consecutive month to a 25-month low of 1.08% in July, on lower inflation in the manufacturing and fuel sectors, according to official data released on Wednesday.

Growth in the Wholesale Price Index slowed in July from 2.02% in June. Within the index, the manufacturing sector saw inflation slipping to 0.34% in July from 0.94% in the previous month.

The fuel and power sector witnessed a contraction in prices for the second consecutive month, contracting 3.64% in July compared with a contraction of 2.2% in June. The crude petroleum and natural gas sector saw prices contracting for the third consecutive month, by 8.43% in July, compared with a contraction of 1.7% in the previous month.

“The decline in the wholesale inflation can be attributed to deflation in the fuel and power group for consecutive two months and decline in inflation in manufactured group to a nearly three-year low,” Care Ratings said in a report.

“Inflation in primary articles continues to increase in July 2019, albeit at a slower pace compared with the previous month. However, it continues to rise when compared with the corresponding period last year.”


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