WPI inflation cools to 11.16pc, predicted to remain in double-digit till October
New Delhi : India’s WPI inflation cooled to 11.16 per cent for the month of July, 2021 as compared to same month last year, data released by Ministry of Commerce and Industry showed.
Month-on-month change in WPI index for month of July, 2021 compared to June 2021 was 0.60 per cent.
The high rate of inflation is primarily due to low base effect and rise in prices of crude petroleum and natural gas, mineral oils, manufactured products like basic metals and food products among others.
“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, said Aditi Nayar, Chief Economist at ICRA.
The WPI inflation was 12.07 per cent in June this year. In the month of May, it had peaked to 13.11 per cent.
“The WPI inflation cooled for the second month in a row to 11.2 per cent in July 2021, modestly trailing our expectation (11.5 per cent), benefitting from a favourable base effect, a welcome softening of food price pressures and the uncertainty related to the Delta plus variant arresting the rise in commodity prices’, said ICRA’s Nair.
