Indian inflation based on wholesale price index (WPI) decreased to 13.93 percent in July, according to data released by the Ministry of Trade on August 16.

WPI inflation was 15.18 percent in June, down from the highest more than three decades 16.63 percent in May.

In July 2021, WPI inflation reached 11.57 percent.

Another month from the double digit increase in wholesale prices in July means that WPI inflation remains above the 10 percent sign for 16 consecutive months.

The decline in WPI inflation in July was driven by lower food prices, with food inflation down to 9.41 percent, down 300 basis points from June.

Among the food, vegetables see a sharp price decline in the month of 12.7 percent. The index for fruits dropped 3.0 percent while for eggs, meat, and fish that recorded a decline of 2.6 percent from June.

Overall, the food index – which reached 24 percent of the WPI basket – fell 2.2 percent in a row in July. This helps drop all the WPI indexes of 0.1 percent from June.

The lower product price also helps reduce WPI inflation last month.

Compared to June, the index for products produced fell 0.4 percent in July, showing the momentum of the price reduced. At the same time, year-to-year inflation for these products-which is 64 percent of the WPI-down to 16 months 8.16 percent.

In June, product inflation produced had reached 9.19 percent.

Conversely, fuel inflation and moving power up to 43.75 percent, with indexes for the category rose 6.6 percent from June.

The decline in wholesale inflation in July follows a decrease in smaller retail inflation.

The data released last week shows the closer inflation of the Consumer Price Index (CPI) down as expected to the lowest level of five months 6.71 percent in July.

However, the decline in CPI inflation is impossible to do much to change the planned increase in the Bank of India Reserve Interest Rate. The central bank has raised the repo level by 140 basis points since early May and is widely expected to do it next month because it faces the prospect of failing to meet its inflation mandate.

The Monetary Policy Committee is scheduled to meet the next 28-30 September.