Giving some relief to the government, India’s food inflation measured by wholesale price index (WPI) softened to 7.58% for week ended July 9 from 8.31% in the previous week. This moderation in food inflation came due to the decline in prices of food items like pulses, onions, cereals, milk and Egg, Meat & Fish. However, the inflation in fuel and power remained unchanged at 11.89%.
According to data released by ministry of commerce and industry, the index for 'Food Articles' group, which account for 14.34% of WPI, remained unchanged at its previous week’s level of 191.7 (Provisional). The items for which the index showed increase are ragi (12%), fruits & vegetables (2%), barley, gram, arhar, masur, poultry chicken and tea (1% each). However the index for fish marine (6%), maize (3%), fish inland (2%) and jowar (1%) declined during the week.
However, the index for 'Non-Food Articles' group, which account for 4.26% of WPI, rose by 0.1% to 175.9 (Provisional) from 175.8 (Provisional) for the previous week due to higher prices of niger seed (20%), gingelly seed and gaur seed (4%), raw rubber, fodder and raw jute (2% each) and flowers and rape & mustard seed (1% each). However, the prices of groundnut seed and soyabean (2% each) and cotton seed, sunflower, mesta, raw cotton, raw silk and castor seed (1% each) declined.
Collectively, the index for Primary Articles group, which account for 20.12% of WPI, rose by 0.1 percent to 197.7 (Provisional) from 197.6 (Provisional) for the previous week.
Meanwhile, the Index for Fuel and power group, which account for 14.91% of WPI, remained unchanged at their previous week’s level of 165.6 (Provisional) and 11.89 % (Provisional) for the week ended 9 June.
The annual rate of inflation, calculated on point to point basis, stood at 11.13 % (Provisional) for the week ended 9 June as compared to 11.58 % (Provisional) for the previous week 2 June.
After reaching to two and half month high level, food inflation has seen some moderation. However, this moderation in food inflation is viewed as temporary, and is less likely to affect the anti inflationary stance adopted by the Reserve Bank of India as the headline inflation for June increased to 9.44% from 9.06% in May and it is widely expected that on July 26, the RBI will go for 11th hike in interest rates since March 2010, in order to cool down inflation.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: