WPI inflation eases for second straight month to 11.16 pc in July on cheaper food items - FOOD, Crude oil, manufacturing and outlook - DETAILS HERE

WPI Inflation – BASE Effect

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 per cent, 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. Source: PTI

WPI Inflation - FOOD

Inflation in food articles eased for the third straight month, and was at 'zero' per cent in July, down from 3.09 per cent in June, even as onion prices spiked. Inflation in onions was high at 72.01 per cent. Source: PTI

WPI Inflation – CRUDE OIL

Inflation in crude petroleum and natural gas was 40.28 per cent in July, against 36.34 per cent in June. Source: PTI

WPI Inflation - Manufacturing

In manufactured products, inflation stood at 11.20 per cent in July, against 10.88 per cent in the previous month.Source: Reuters

WPI Inflation – PREVIOUS TRENDS

WPI inflation scaled double digit in April at 10.74 per cent, rising to a record high of 13.11 per cent in May. In June it eased to 12.07 per cent and further moderated to 11.16 per cent in July. Source: PTI

WPI Inflation – OUTLOOK

ICRA Chief Economist Aditi Nayar said the core-inflation is likely to have peaked at 10.8 per cent in July 2021. 

"The headline WPI inflation is expected to remain in double-digits until October 2021, and therefore its softening over the last two months is unlikely to provide any material comfort to the monetary policy committee," Nayar added. Source: PTI