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Headline inflation eased marginally in July, with policy tightening by the RBI partly offset by surging food prices, especially vegetables.
The annual Wholesale Price Index-based inflation for July rose 9.22 per cent in July, slightly slower than 9.44 per cent in June.
For May, the final inflation estimates were revised upwards to 9.56 per cent from the provisional estimate of 9.06 per cent. Last time, the April WPI too was sharply revised from 8.66 per cent to 9.74 per cent.
While the annual inflation in both primary articles and the fuels sub-group eased with respect to the numbers reported in the previous week, manufactured products inflation inched up to 7.5 per cent.
Analysts said the Reserve Bank of India (RBI) is likely to keep a close tab on the manufacturing inflation data as the June numbers were disappointing as well. The increase in July estimate increases the possibility that the central bank will hike the rates again at its next review.
The RBI has continuously hiked the rates since March last year. The central bank, which is scheduled to meet on September 16 for its next policy review, raised the rates by a steeper-than-expected 50 basis points in July.
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