July WPI at -0.58%, in negative zone for fourth month on the trot

The Wholesale Price Index continued to be in the deflationary territory for the fourth straight month in July. Data released by the Commerce Ministry on Friday showed that WPI inflation came in -0.58 per cent year-on-year, compared with -1.81 per cent in June and a 4.5-year low of -3.37 per cent in May.

The steep fall in deflation from June to July slightly reduced the gap between WPI and Consumer Price Index-based inflation. On Thursday, official data had shown that retail inflation came in above the monetary policy committee’s target band of 4 per cent (with a margin of +/-2)