Wholesale inflation declines, at 11.16 percent in July, Wholesale inflation declines, at 11.16 percent in July

New Delhi : Inflation based on the Wholesale Price Index declined for the second straight month to 11.16 per cent in July due to lower food prices. However, prices of manufactured goods and crude oil also increased during this period. The Ministry of Commerce and Industry gave this information in a statement on Monday. However, for the third consecutive month in July, WPI inflation remained higher by double digits, or 10 per cent, due to the lower base effect of last year.

The ministry said the higher rate of inflation in July, 2021 was due to the lower base effect and crude oil and natural gas; There is an increase in the prices of manufactured products such as basic metals, food products, apparel, chemicals and chemical products. However, food prices declined for the third consecutive month in July. Inflation in food articles stood at ‘zero’ in July. It was 3.09 per cent in June. However, onions became costlier during this period. Onion inflation was at an all-time high of 72.01 per cent.

Crude petroleum and natural gas inflation 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 in its last monetary review has kept policy rates at record low levels. While deciding the monetary review, the central bank takes into account retail inflation. According to the data released last week, retail inflation declined to 5.59 per cent in July.