Mumbai: India’s wholesale price index (WPI)-based inflation increased to 1.88% in July, led by increases in food and mineral prices, compared to 0.90% rise a month ago, government data showed on Monday.

Food inflation accelerated by 2.15% in the month of July compared to 3.47% disinflation a month back—except for the price of pulses and potato, which continued to show a downward trend.

Vegetable prices increased to 21.95% in July, compared to a disinflation of 21.16% in the previous month. Tomato, whose price jumped 209% on a month-on-month basis, contributed the most to this increase. Mineral inflation spiked to 24.84% in July compared to 2.02% downfall in June.

Core WPI inflation, which excludes food and fuel items, eased to 2.1% in July compared to 2% in June.

“The turnaround in inflation for primary food items and minerals, the former on account of the spike in vegetable prices and the latter led by an unfavourable base effect, caused the WPI inflation to more-than-double to 1.9% in July 2017 from 0.9% in June 2017," said Aditi Nayar, principal economist at ICRA Ltd.

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