Team News Riveting
New Delhi, August 16
The wholesale inflation across the country eased to 11.16 per cent in July, underlining the reduction of wholesale prices of goods for the second consecutive month.
According to the data released by the Ministry of Commerce and Industry, the annual rate of inflation is 11.16 per cent (Provisional) for the month of July, 2021 (over July, 2020) as compared to (-0.25 per cent) in July, 2020. The wholesale price index (WPI) grew 12.07 per cent during the month of June, while the WPI for May was revised to 13.11 per cent from 12.94 per cent. The month over month change in WPI index for the month of July, 2021 (as compared to June, 2021) was 0.60 per cent.
“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 to the corresponding month of the previous year,” the statement issued by the ministry said.
The month-on-month decline in WPI is on account of a reduction in food inflation from 4.46 per cent year-on-year (YoY) in July 2021 as compared to 6.66 per cent YoY in June. Similarly, wholesale prices of fuel and power also reduced sharply which contributed to the reduction. Fuel and power inflation for the month was reported at 26.02 per cent YoY compared 32.85 per cent yearly increase recorded in the previous month of the same fiscal.
