The wholesale price-based inflation (WPI) softened for the second consecutive month to 11.16 percent in July, on cheaper food items, even though prices of manufactured goods and crude oil hardened. However, WPI inflation remained in double-digit for the fourth consecutive month in July, mainly due to a low base of last year. WPI inflation was (-) 0.25 percent, in July 2020. "The high rate of inflation in July 2021 is primarily due to low base effect and rise in prices of crude petroleum and natural gas; mineral oils; manufactured products like basic metals; food products; textiles; chemicals and chemical products etc as compared the corresponding month of the previous year," the Commerce and Industry Ministry said in a statement.
Inflation in food articles eased for the third straight month, and was at 'zero' percent in July, down from 3.09 percent in June, even as onion prices spiked. Inflation in onions was high at 72.01 percent. Inflation in crude petroleum and natural gas was 40.28 percent in July, against 36.34 percent in June.
The RBI, which mainly takes into account retail inflation, in its monetary policy last week kept interest rates unchanged at record lows. It projected CPI or retail inflation at 5.7 percent during 2021-22, up from its earlier projection of 5.1 percent.
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