New Delhi: Price inflation based on the Wholesale Price Index declined for the second straight month to 11.16 per cent in July on the back of fall in food prices. However, prices of manufactured goods and crude oil also increased during this period. This information was given by the Ministry of Commerce and Industry in a statement on Monday.
However, WPI-based inflation was higher by double digits or 10 per cent for the third consecutive month in July, due to lower base effect of last year.
“The higher rate of inflation in July 2021 was due to a lower base effect and crude oil and natural gas; increased prices of manufactured products such as basic metals, food products, apparel, chemicals and chemical products.”
However, for the third consecutive month in July, food prices have seen a decline. Inflation in food articles stood at ‘zero’ in July, from 3.09 per cent in June. However, during this period onion prices saw a rise. Onion prices increase by a record 72.01 percent
Inflation in crude petroleum and natural gas stood at 40.28 per cent in July, as against 36.34 per cent in June. Inflation in manufactured products stood at 11.20 per cent in July, as against 10.88 per cent in June.
The Reserve Bank of India, in compliance with its last monetary review, has maintained policy rates at record low levels. The Reserve Bank of India looks at retail inflation while conducting monetary review. According to the data released last week, retail inflation came down to 5.59 per cent in July.
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