WPI inflation at 11.16% in Ju as prices ease
The wholesale pricebased inflation softened for the second straight month to 11.16% in July on cheaper food items, even though prices of manufactured goods and crude oil hardened.
However, WPI inflation remained in double digit for the third consecutive month in July, mainly due to a low base of last year. WPI inflation was (-) 0.25%, in July 2020.
“The high rate of inflation in July 2021 is primarily due to low base effect and rise in prices of crude petroleum and natural gas; mineral oils; manufactured products like basic metals; food products; textiles; chemicals and chemical products etc as compared the corresponding month of the previous year,” the commerce and industry ministry said in a statement.
Inflation in food articles eased for the third straight month, and was at ‘zero’ per cent in July, down from 3.09% in June, even as onion prices spiked. Inflation in onions was high at 72.01%.
Inflation in crude petroleum and natural gas was 40.28% in July, against 36.34% in June.
In manufactured products, inflation stood at 11.20% in July, against 10.88% in the previous month.
The Reserve Bank of India, which mainly takes into account retail inflation, in its mone policy last week kept inte rates unchanged at record l It projected CPI or retail infla at 5.7% during 2021-22, up f its earlier projection of 5.1%
Data released last w showed retail inflation ease 5.59% in July, mainly due to tening food prices
The wholesale price-b inflation in July eased mar ally to 12.07% as crude oil food items witnessed some tening in prices.
However, WPI infla remained in double digit fo third consecutive month in J mainly due to a low base of year. WPI inflation was (-) 1. in June 2020.
Snapping the five stra months of uptick, the whole price index (Wpi)-based i tion in June softened as pric food articles and crude oil ea even though manufactu products hardened.
“The high rate of inflatio June 2021, is primarily du low base effect and rise in pr of mineral oils viz petrol, d (HSD), naphtha, ATF, furnac etc, and manufactured prod like basic metal, food prod chemical products etc as c pared the corresponding m of the previous year,” the c merce and industry ministry said.
Inflation in fuel and po basket eased to 32.83%du June, against 37.61% in May