India's wholesale inflation rises to 11.16% in July
19 August 2021
The annual rate of inflation based on the wholesale price index (WPI) stood at 11.16 per cent in July 2021, provisional estimates released by the Office of the Economic Adviser in the Department for Promotion of Industry and Internal Trade (DPIIT), showed.
WPI-based inflation rate stood at (-) 0.25 per cent in July last year.
The high rate of inflation in July 2021 has primarily been attributed to low base effect and a rise in prices of crude petroleum and natural gas, mineral oils, manufactured products (including basic metals, food products, textiles, chemicals and chemical products etc) compared to the corresponding month of the previous year.
Inflation rate for the primary articles group, which has a weight of 22.62 per cent in the WPI, increased by 1.05 per cent in July 2021, provisional estimates show.
Within the group, prices of crude petroleum and natural gas increased by 7.91 per cent, non-food articles (2.35 per cent in the index) and food articles (0.69 per cent) in July 2021 compared to June. Prices of minerals (-8.11 per cent) declined in July 2021 compared to June 2021.
Inflation rate for the fuel and power group (weight of 13.15 per cent in the index) increased by 0.53 per cent to 114.3 (provisional) in July 2021 from 113.7 (provisional) for the month of June 2021. Prices of mineral oils (5.41 per cent) increased in July 2021 as compared to June 2021. Prices of electricity (-11.61 per cent) declined in July 2021 compared to June, 2021. Prices of coal remained unchanged.
Inflation rate for the manufactured products group (weight of 64.23 per cent in the index) increased by (0.38 per cent) in July 202. Out of the 22 groups for the manufactured products group, 13 groups have witnessed increase in prices; 8 groups have witnessed decrease and for one group the prices remained unchanged in July 2021 compared to June 2021. The increase in prices has been due mainly to higher prices of tobacco products, fabricated metal products (except machinery and equipment); machinery and equipment; printing and reproduction of recorded media and computer, electronic and optical products.
Some of the groups that have witnessed decrease in prices are pharmaceuticals, medicinal chemicals and botanical products; furniture; other manufacturing; rubber and plastics products and electrical equipment in July 2021 compared to June 2021.
Inflation rate based on the WPI food index (weight of 24.38 per cent) consisting of 'food articles' from primary articles group and 'food products' from manufactured products group decreased to 4.46 per cent in July 2021 from 6.66 per cent in June 2021.
The revised inflation rate based on the final index for all commodities for the month of May 2021 stood at 13.11 per cent.