Wholesale price index in India sees a second consecutive deceleration over July

Inflation at wholesale level decelerated for a second time in a row to 11.2% y/y in July, after registering record-high levels in May 2021. The increase in overall inflation in July was driven primarily by soaring prices of fuel and power, which also touched a record high in May 2021, even though all components of the wholesale price index underwent a slowdown, except for manufactured products.

Under fuel and power, mineral oils have experienced a significant increase since March 2021, growing by a record 83% y/y in May, slowing to 61.8% y/y and 51.8% y/y in June and July, respectively. This suggests that oil prices may have peaked and would probably see greater moderation in the near term.

Source: CEIC, Ministry of Commerce and Industry (India)

Further data and analysis on India’s economy are available on the CEIC India Economy in a Snapshot – Q2 2021 report.