WPI inflation eases to 11.16% in July

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The wholesale price-based 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 0% 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.