Wholesale Price Inflation Plummets, Deflation Persists

Wholesale price inflation continued its downward trend for the second month, registering a negative rate of 0.58% in July, primarily driven by declining prices in food articles and fuel, government data revealed on Thursday.

Despite the deflation in natural resources, the cost of manufactured goods saw an uptick, with inflation at 2.05% in July compared to 1.97% the previous month.

The Reserve Bank of India maintained its benchmark policy rates at 5.5% earlier this month as retail inflation fell to an eight-year low of 1.55%.

(With inputs from agencies.)