Annual rate of wholesale inflation based on the Wholesale Price Index (WPI) eased to 11.16 per cent in July from 12.07 per cent in June, helped by lower increase in prices of fuel and power, data released by the government on Monday showed. 

Wholesale inflation was at 13.11 per cent in May this year and it was (-)0.25 per cent in July 2020. 

The high rate of inflation in July as compared to the year-ago month “is primarily due to low-base effect and rise in prices of crude petroleum and natural gas; mineral oils; manufactured products...”, a media release from the government said. 

On an annual basis, fuel and power prices rose by 26.02 per cent in July, while inflation for manufactured products was at 11.20 per cent. 

However, on a month-on-month basis, inflation for fuel and power declined by 0.53 per cent in July from 3.55 per cent in June, while price of manufactured products rose by 0.38 per cent after remaining unchanged in June. 

Inflation in food articles eased for the third straight month and was at 0 per cent in July, down from 3.09 per cent in June. However, onion prices spiked with an inflation of 72.01 per cent. 

Inflation for crude petroleum and natural gas was at 40.28 per cent in July as against 36.34 per cent in June. 

According to data released last week, the country’s retail inflation had eased to a three-month low of 5.59 per cent in July from 6.26 per cent in June, mainly due to softening of food prices.