Wholesale Price Inflation Eases To 11.16% In July 2021

The Wholesale Price Index (WPI) eased to 11.16 per cent in July 2021 from 12.07 per cent in June 2021, mainly due to tempering down in prices of primary articles as well as those of fuel and power, according to data released by Commerce Ministry.

Lowering of food index also contributed to wholesale inflation coming down in July 2021, the data said.

“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 and other commodities, as compared to the corresponding month of the previous year,” an official statement issued by the Commerce Ministry said.

At the same time though, WPI inflation remained within the double digit range for the third month in a row in July, mainly due to a low base of last year. WPI inflation was (-) 0.25 percent, in July 2020.

Also prices of food articles came down for the third consecutive month, and stood at zero percent in July, down from 3.09 per cent in June, despite rise in onion prices. Inflation in onions was high at 72.01 percent.

Prices of crude petroleum and natural gas however surged in July 2021 as they were at 40.28 percent  against 36.34 percent in June 2021. Manufactured products too were dearer as they were at 11.20 per cent in July, as against 10.88 per cent in June 2021.