WPI Inflation Eases To 11.16% In July; Food, Crude Prices Soften

395

New Delhi: The wholesale price-based inflation eased marginally to 11.16 percent in July as crude oil and food items witnessed some softening in prices.

According to the Ministry of Commerce and Industry, the annual rate of inflation is 11.16% (Provisional) for the month of July 2021 (over July, 2020) as compared to (-0.25%) in July, 2020.

The high rate of inflation in July 2021 is primarily due tolow base effect and rise in prices ofcrude petroleum & natural gas; mineral oils; manufactured products like basic metals; food products; textiles; chemicals and chemical products etc as comparedthe corresponding month of the previous year, the Ministry stated.

Month over Month Change in Major Groups of WPI:

Primary articles (weight 22.62%): – The index for this major group increased by (1.05%) to 153.4 (provisional) in July, 2021 from 151.8 (provisional) for the month of June, 2021. Prices of Crude Petroleum & Natural Gas (7.91%), Non-food Articles (2.35%) and Food Articles (0.69%) increased in July, 2021 as compared to June, 2021. Prices of Minerals (-8.11%) declined in July, 2021 as compared to June, 2021.

Fuel & power (weight 13.15%): – The index for this major group increased by (0.53%) to 114.3 (provisional) in July, 2021 from 113.7 (provisional) for the month of June, 2021. Prices of Mineral Oils (5.41%) increased in July, 2021 as compared to June, 2021. Prices of Electricity (-11.61%) declined in July, 2021 as compared to June, 2021. Prices of coal remain unchanged.

Manufactured products (weight 64.23%): – The index for this major group increased by (0.38%) to 132.0 (provisional) in July, 2021 from 131.5 (provisional) for the month of June, 2021. Out of the 22 NIC two-digit groups for Manufactured products, 13 groups have witnessed increase in prices; 8 groups have witnessed decrease and for one group the prices remained unchanged in July, 2021 as compared to June, 2021. The increase in prices in 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.Someof the groups that have witnessed decrease in prices are manufacture of pharmaceuticals, medicinal chemical and botanical products; furniture; other manufacturing; rubber and plastics products and electrical equipmentin July, 2021 as compared to June, 2021.

WPI food index (weight 24.38%): – The Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group have increased from 158.6 in June, 2021 to 159.3 in July, 2021. The rate of inflation based on WPI Food Index decreased from 6.66% in June, 2021 to 4.46% in July, 2021.

Final index for the month of May, 2021 (Base Year:2011-12=100): For the month of May, 2021, the final Wholesale Price Index and inflation rate for ‘All Commodities’ (Base: 2011-12=100) stood at 132.9 and 13.11% respectively.The details of All India Wholesale Price Indices and Rates of Inflation for different commodity groups for July, 2021 are at Annex I. The Annual rate of Inflation (Y- o-Y) based on WPI for different commodity groups in the last six months is at Annex II. The WPI Indexfor different commodity groups in the last six months is at Annex III.

Response Rate: The WPI for July, 2021 have been compiled at a weighted response rate of 82percent, while the final figure for May, 2021 is based on the weighted response rate of 93percent. The Provisional figures of WPI will undergo revision as per the final revision policy of WPI.

Comments are closed.

Breaking