New Delhi
The wholesale inflation in India may reach a two -year low in July. The reason for this is the fall in food and fuel prices. This information was given in a report. Union Bank of India said in its report that the wholesale inflation in July could be reduced to -0.45 percent on an annual basis. It was -0.13 percent in June. If the print of wholesale inflation comes at this level in July, which will be the lowest level after August 2023.
The report said, “In July 2025, the wholesale inflation is estimated to be at a two -year low with a inflation rate -0.45 percent.” The report stated that the wholesale inflation rate also shows the trend of retail inflation, as the prices of food products declined annually during the review period. The main wholesale inflation, which is not included in food items and fuel, may be 1.50 percent in July, which is more than 1.06 percent of June.
According to the report, the food inflation rate in July may be reduced to -1.72 percent, which was -0.26 percent in June. Fuel inflation in July is expected to be -4.90 percent, which was -4.23 percent in June. The report indicates that there is a risk of inflation in the global market, but domestic conditions will be important in determining the trend of wholesale inflation in the coming months.
The Reserve Bank of India (RBI) maintained the repo rate at 5.5 percent in its August Monetary Policy Committee (MPC) meeting. With this, the estimate of retail inflation was reduced. The central bank reduced its inflation estimate for FY 26 to 3.1 percent, while the retail inflation was 2.1 percent in June.
