India’s wholesale inflation drops to 11.16% in July from 12.07% in June

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…

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