Cheaper Food Items Ease WPI Inflation To 11.6 percent

The wholesale price-based inflation softened for the second straight month to 11.16 percent in July, on cheaper food items, even though prices of manufactured goods and crude oil-hardened.

However, WPI inflation remained double-digit for the fourth consecutive month in July, mainly due to a low base of last year. WPI inflation was (-) 0.25 percent, 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’’ percent in July, down from 3.09 percent in June, even as onion prices spiked. Inflation in onions was high at 72.01 percent.

Inflation in crude petroleum and natural gas was 40.28 percent in July, against 36.34 percent in June.

In manufactured products, inflation stood at 11.20 percent in July, against 10.88 percent in the previous month.

WPI inflation scaled double-digit in April at 10.74 percent, rising to a record high of 13.11 percent in May. In June it eased to 12.07 percent and further moderated to 11.16 percent in July.