India’s wholesale inflation drops to 11.16% in July from 12.07% in June
The high rate of inflation was primarily due to the low base effect and rise in prices of crude petroleum and natural gas, the government said.
Inflation measured by the wholesale price index fell to 11.16% in July from 12.07% in June, data released by the government showed on Monday.
“The high rate of inflation in July 2021 is primarily due to low base effect and rise in prices of crude petroleum & natural gas; mineral oils; manufactured products like basic metals; food products; textiles; chemicals and chemical products etc as compared to the corresponding month of the previous year,” the Ministry of Commerce and Industry said.
The inflation remained within the double-digit range for July mainly due to a low base year. The wholesale price index, or WPI, had contracted to 0.25% in July 2020.
The month-on-month change in the wholesale price index, or WPI, for July when compared to June was 0.60%.
A 26.02% rate of inflation in July was reported against 32.83% in June in the fuel and power categories. In the manufactured products segment, which has the highest weightage of 64.2% in the index, the rate of inflation rose to 11.20% in July against 10.88% the previous month.
Prices of food articles fell to 0% in July from 3.09% in June. This is despite a 72.01% inflation in the prices of onions. The cost of fuel climbed to 40.28% in July as compared to 36.34% a month before that.
Separate data released by the government last week had shown that July’s retail inflation, which is an indicator of price rise, eased to 5.59% from 6.26% in June. The data was within the range of the Reserve Bank of India’s comfort zone of 2% to 6% target, economists said.
The inflation in retail food prices dropped to 3.96% in July as compared to June’s 5.15%. Food prices make up nearly half of the inflation basket.
The retail prices of fuel and light increased by 12.38% as compared to the same period in 2020. However, the retail fuel and light prices dropped on a monthly basis as the inflation in June was 12.68%.
Meanwhile, another set of data released by the Ministry of Statistics and Programme Implementation showed that the industrial production rate for June rose by 13.6% from a year earlier. In June 2020, the industrial production rate had contracted 16.6%. The contraction was the result of a partial lockdown in the country imposed to rein in the coronavirus pandemic.