Low Base Year Effect Pushes Wholesale Price Index Up 11.16% On Year In July 2021

The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT) released index numbers of wholesale price in India (Base Year: 2011-12) for the month of July, 2021 today. It noted that 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 to low base effect and rise in prices of crude petroleum & 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. Primary articles group index 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 group index 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 group index increased by (0.38%) to 132.0 (provisional) in July, 2021 from 131.5 (provisional) for the month of June, 2021. 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.

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