Retail Inflation Data Was Released Last Week, 5.59 Percent In July
Retail inflation data was released last week, softening of wholesale inflation in July; cheap food items.
The fall in the wholesale inflation rate for the second consecutive month was seen in July due to the softening of the prices of food items.
WPI inflation stood at 11.16 percent last month. Despite the moderation, wholesale inflation remained in double digits for the third straight month in July, mainly due to the low base effect.
However, in the month of July, the prices of manufactured goods and crude oil saw a rise.
In a statement issued by the Ministry of Commerce and Industry, it has been said that the ‘inflation rate in July 2021 was high mainly due to low base effect and rise in crude petroleum and natural gas prices.’
The statement issued by the ministry said, “Low base effect and increase in prices of manufactured products like crude petroleum and natural gas.
Mineral oil, basic metals, food products, textiles, chemicals, and chemical products, etc. as compared to July last year.” Rapidly, inflation remained high in July 2021.
Food prices softened for the third consecutive month. Despite the increase in onion prices in July, there was no increase in the wholesale prices of food items.
n June, the wholesale inflation rate of food articles stood at 3.09 percent. At the same time, there was a jump of 72.01 percent in the wholesale price of onion last month.
Crude petroleum and natural gas inflation stood at 40.28 percent in July, up from 36.34 percent in June.
If we talk about manufactured products, then the inflation rate in this category stood at 11.20 percent in July, which was 10.88 percent in June.
That’s why inflation rate figures are important.
The Reserve Bank of India (RBI) takes into account the retail inflation data during its monetary policy review.
The central bank had kept interest rates at a record low in the Central Monetary Committee (MPC) meeting held earlier this month.
The central bank had projected the retail inflation rate (CPI) to be at 5.7 percent during the financial year 2021-22. This is higher than the central bank’s earlier estimate of 5.1 percent.
Retail inflation data was released last week. These figures show that retail inflation stood at 5.59 percent in July. The decline in retail inflation was mainly due to the moderation in the prices of food items.
