WPI inflation rises sharply to 1.88% in July

Wholesale inflation rose to 1.88 per cent in July as prices of some commodities increased in the first month of Goods and Services Tax (GST) rollout.

Inflation based on the wholesale price index (WPI) was 0.90 per cent in June 2017 and 0.63 per cent in July 2016.

The government data released on Monday showed that prices of food articles went up by 2.15 per cent in July on a yearly basis. In June, the prices had contracted by 3.47 per cent.

Vegetable prices which had witnessed a 21.16 per cent contraction in June, shot up by 21.95 per cent in July.

However, manufactured products saw slight fall in inflation at 2.18 per cent in July, compared to 2.27 per cent in June.

In fuel and power segment, inflation witnessed a decline at 4.37 per cent in July, over 5.28 per cent in the previous month.

Apart from vegetables, the food articles which saw rise in prices include egg, meat and fish where inflation stood at 3.30 per cent. Fruits saw inflation at 2.71 per cent, cereals (0.63 per cent) and paddy (3.47 per cent).

However, potato continued to see deflation at 42.45 per cent, pulses (-)32.56 per cent and onion (-)9.50 per cent.

(Agencies)