India’s wholesale price inflation dips to 6.87 in July

The annual rate of inflation based on wholesale price index declined to 6.87 per cent in July 2012, the lowest in the past two-and-a-half years, on the back of a dip in food and fuel prices, although manufacturing prices stayed high.

Build-up of inflation in the financial year so far was also lower at 2.36 per cent against 3.14 per cent in the corresponding period of the previous year.

The wholesale price inflation stood at 7.25 per cent in the previous month (June 2012) and 9.36 per cent during the corresponding month of the previous year.

The official wholesale price index for 'all commodities' (base: 2004-05 = 100) rose 0.4 per cent to 164.8 (provisional) in July 2012 from 164.2 (provisional) in June 2012.

Among primary articles, food prices rose just over 10 per cent year-on-year in July against the 10.81 per cent increase seen in June.

Potatoes turned costlier by 73 per cent, pulses by 28.26 per cent and vegetables by 24.11 per cent on an annual basis. Eggs, meat and fish prices were also up by 16 per cent and milk by 8.01 per cent.