WPI fell to 11.16% due to fall in food prices, wholesale inflation fell for the second consecutive month
for the second consecutive month in the country wholesale inflation (The Wholesale Price Index) has registered a decline. On Monday, the latest data on WPI has been released by the Ministry of Commerce, in which the ministry has told that in the current financial year, the wholesale inflation in the month of July has come down to 11.16 percent. It was 12.07 percent in the last month i.e. June. However, for the third consecutive month in July, wholesale inflation remained above double digits or 10 per cent. In July, 2020 the WPI had gone down to -0.25%. In such a situation, due to this lower base, inflation remains in double digits.
Releasing the data today, the ministry said that there has been a decline in the wholesale price index based inflation due to the fall in the prices of food items. However, prices of manufactured goods and crude oil have also increased during this period. 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 ministry said in its statement, “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 like basic metals, food products, apparel, chemicals and chemical products. However, the prices of food items have come down for the third consecutive month in July. Inflation in food articles stood at ‘zero’ in July. It was 3.09 percent in June. However, onions became expensive during this period. Onion inflation was at an all-time high of 72.01 per cent.
Let us tell you that the Reserve Bank decides its monetary policy keeping in mind the retail inflation. This time too the central bank has kept the policy rates at a record low level. At the same time, according to the data released last week, the rate of retail inflation has come down to 5.59 percent in July.