Inflation in food articles eased for the third consecutive month, and stood at ‘zero’ per cent in July, from 3.09 per cent in June, while onion prices edged up.
Inflation based on wholesale prices on cheaper food items eased for the second straight month at 11.16 per cent in July, though prices of manufactured goods and crude oil firmed up. However, WPI inflation remained in double digits for the third consecutive month in July, mainly due to lower base last year. WPI inflation was (-) 0.25 per cent in July 2020.
“The higher rate of inflation in July 2021 is mainly due to lower base effect and rise in prices of crude petroleum and natural gas; mineral oil; manufactured products such as basic metals; food products; textiles; chemicals and chemical products etc.) in the month of last year,” the Ministry of Commerce and Industry said in a statement.
Inflation in food articles eased for the third consecutive month, and stood at ‘zero’ per cent in July, from 3.09 per cent in June, while onion prices edged up. Onion inflation was at a high of 72.01 per cent.
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 the previous month.
The RBI, which primarily takes into account retail inflation, kept interest rates unchanged at a record low in its monetary policy last week. It projected CPI or retail inflation at 5.7 per cent during 2021-22, higher than its earlier estimate of 5.1 per cent.
Data released last week showed that retail inflation eased to 5.59 per cent in July, mainly due to moderation in food prices.
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