India Sees WPI Inflation Stay High Through FY27 as July Holds at 9.8%
Updated
Updated · bignewsnetwork.com · Aug 15
India Sees WPI Inflation Stay High Through FY27 as July Holds at 9.8%
2 articles · Updated · bignewsnetwork.com · Aug 15
Summary
ICICI Bank expects India’s wholesale inflation to remain elevated through FY27 even after July WPI eased only marginally to 9.8% from 9.9% in June.
Low base effects, firmer food and fuel costs, and global energy uncertainty are driving that outlook, with crude averaging $86.8 a barrel so far in FY27 versus $69 in FY26.
July’s slight moderation came from fuel and power inflation, which slowed to 20% from 27.4%, while mineral oils eased and LPG, ATF and naphtha prices softened.
Underlying pressures still broadened: primary articles inflation rose to 8.5%, a 21-month high, and manufactured products climbed to 8.3%, the highest in 28 months.
The report sees limited pass-through to consumers, projecting CPI at 4.8% in FY27, though a better monsoon and sowing outlook could cool food inflation later in the year.