New Delhi [India], Aug 16 (ANI): The annual rate of inflation based on monthly wholesale price index (WPI) dropped to 11.16 per cent in July from 12.07 per cent in the previous month, government data showed on Monday.
The decline was due to lower increases in cost of fuel and food items. A low-base effect also contributed to the WPI inflation in July, since it stood at minus 0.25 per cent in the corresponding month of 2020.
The rate of food inflation decreased from 6.66 per cent in June to 4.46 per cent in July. Prices of fuel items were up 26.02 per cent year-on-year compared to 32.83 per cent in June.
A statement issued by the Ministry of Commerce and Industry said the index for primary articles increased by 1.05 per cent to 153.4 in July from 151.8 for June.
Prices of crude petroleum and natural gas (7.91 per cent), non-food articles (2.35 per cent) and food articles (0.69 per cent) increased in July as compared to June 2021.
Prices of minerals (minus 8.11 per cent) declined in July as compared to June.
The index for fuel and power increased by (0.53 per cent) to 114.3 from 113.7. Prices of mineral oils (5.41 per cent) increased in July as compared to June. Prices of electricity (minus 11.61 per cent) declined while prices of coal remain unchanged.
The index for manufactured products increased by 0.38 per cent to 132. Out of the 22 NIC two-digit groups for manufactured products, 13 groups witnessed increase in prices, 8 groups witnessed decrease and for one group the prices remained unchanged.
The increase in prices was mainly contributed by manufacture 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 witnessed decrease in prices were manufacture of pharmaceuticals, medicinal chemical and botanical products; furniture; other manufacturing; rubber and plastics products and electrical equipment. (ANI)