WPI inflation cools to 2 year low of 1.08% in July vs 2.02% in June

The government data said inflation in food articles was 6.15% in July and 6.98 % in the previous month.

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The wholesale price index (WPI) based inflation was at 2.02 % in June- 2019 and 5.27 % in July 2018. The previous low for WPI inflations was 0.9% in June 2017

The WPI was declined for the third consecutive month to a 25 months low of 1.08 percent in July,  Prices of manufactured products food items, fuel and, Government data showed on Wednesday.

The Consumer Price Index known as a CPI-based in retail inflation, which the RBI  takes into account while deciding its monetary policy, eased marginally to 3.15 % in July, indicating room for a further rate cut in monetary policy in October.

Around half of the core CPI is made up of services, the demand for which is likely to be sticky in a downturn and prices relatively inelastic to changes in commodity prices, said Aditi Nayar, Principal Economist of ICRA.

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