WPI inflation eases to 9.78% in July on softer energy prices
Synopsis
India's wholesale inflation edged down to 9.78% in July, with fuel and power costs cooling sharply from 27.41% to 20.05%. But manufactured goods and food prices stayed firm — a reminder that the easing is narrow, energy-led, and hostage to geopolitical risk.
Key Takeaways
WPI inflation fell to 9.78% in July from 9.87% in June.
Fuel and power inflation dropped sharply to 20.05% from 27.41% in June, driving the headline decline.
Food articles inflation remained elevated at 5.44% ; manufactured food products inflation stood at 8.89% .
Manufacturing inflation came in at 8.29% , with chemicals, basic metals, and electrical equipment recording higher readings.
Primary articles group inflation was 8.52% in July.
Economists and PHDCCI expect wholesale inflation to moderate gradually, supported by easing energy costs and improving supply conditions.
India's wholesale price index (WPI) inflation eased marginally to 9.78% in July from 9.87% in June, with economists and industry leaders attributing the moderation to softer global energy prices. The data, released on 14 August, signals a tentative cooling in wholesale-level price pressures, even as food and manufactured goods inflation remain firm.
Fuel and Power Lead the Decline
The primary driver of the easing was a sharp drop in fuel and power inflation, which fell to 20.05% in July from 27.41% in June. Rajani Sinha, Chief Economist at CareEdge Ratings, said the decline reflected lower prices of mineral oils, crude petroleum, and natural gas, in line with sequential softening in global energy markets.
However, Sinha cautioned that the global geopolitical environment remained volatile, and the trajectory of fuel inflation would continue to hinge on international energy market developments.
Manufacturing and Food Inflation Stay Elevated
Despite the headline easing, manufactured product inflation rose, reflecting the pass-through of higher input costs to producers. Industry body PHDCCI noted that manufacturing inflation stood at 8.29% in July, with elevated readings in chemicals and chemical products, basic metals, and electrical equipment — segments tied to renewable energy supply chains and healthy industrial demand.
Food articles inflation remained firm at 5.44%, while inflation in manufactured food products came in at 8.89% during the month. The primary articles group recorded inflation of 8.52% in July.
What Industry Leaders Said
Rajeev Juneja, President of PHDCCI, said that while the manufacturing sector continues to navigate high input costs, the Reserve Bank of India's neutral monetary policy stance would support manufacturers by enabling access to loans at stable interest rates.
Ranjeet Mehta, CEO and Secretary General of PHDCCI, described the immediate outlook as 'one of elevated but potentially moderating wholesale inflation', citing easing energy costs, improving domestic supply conditions, and softer input prices as supportive factors.
Outlook: Gradual Moderation Expected
Economists broadly expect inflationary pressures at the wholesale level to moderate gradually in the months ahead, contingent on global energy prices remaining subdued and domestic supply chains continuing to improve. This comes amid ongoing global uncertainty, with geopolitical tensions capable of reversing energy cost gains at short notice. The direction of WPI in the coming months will be closely watched as a leading indicator of producer-level stress and its eventual pass-through to consumer prices.
Point of View
And the composition of the move matters more than the headline. The entire easing is energy-driven — a category notoriously sensitive to geopolitical shocks that can reverse overnight. Meanwhile, manufactured product and food inflation remain sticky, suggesting producers are still absorbing cost pressures that have not fully unwound. The RBI's neutral stance may stabilise borrowing costs for manufacturers, but it does not address the structural supply-side constraints that keep food inflation persistently above 5%. If global energy markets tighten again — as they have repeatedly in the past two years — this brief respite will look like a false dawn.
NationPress
14 Aug 2026
Frequently Asked Questions
What is India's WPI inflation rate for July 2024?
India's wholesale price index (WPI) inflation stood at 9.78% in July 2024, down marginally from 9.87% in June. The easing was primarily driven by a sharp decline in fuel and power inflation.
Why did WPI inflation ease in July?
The moderation was led by a significant fall in fuel and power inflation, which dropped to 20.05% in July from 27.41% in June, reflecting lower global prices of mineral oils, crude petroleum, and natural gas. Economists at CareEdge Ratings attributed this to sequential softening in international energy markets.
Is food inflation still a concern under WPI?
Yes. Food articles inflation remained elevated at 5.44% in July, and manufactured food products inflation stood at 8.89%, indicating that food-side pressures have not meaningfully eased despite the headline moderation.
What is the outlook for wholesale inflation in India?
Industry body PHDCCI and economists expect wholesale inflation to gradually moderate, supported by easing energy costs, improving domestic supply conditions, and softer input prices. However, they caution that global geopolitical volatility could disrupt the energy price trajectory and reverse gains.
How does the RBI's monetary policy stance affect manufacturers?
PHDCCI noted that the RBI's neutral monetary policy stance supports manufacturers by allowing access to loans at stable interest rates, providing some relief even as input costs remain elevated across sectors.
