Speed Post News Network
New Delhi : The Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT), has released index numbers of wholesale price in India (Base Year: 2011-12) for the month of July, 2021 (Provisional), and for the month of May, 2021 (Final).
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 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 to the corresponding month of the previous year, according to a PIB release. The month over month change in WPI index for the month of July, 2021 (as compared to June, 2021) was 0.60%.
Provisional figures of Wholesale Price Index (WPI) are released on 14th of every month (or next working day) with a time lag of two weeks of the reference month and compiled with data received from institutional sources and selected manufacturing units across the country. After 10 weeks, the index is finalised and final figures are released and then frozen thereafter.
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 is 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.Some of 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 equipment in 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.