According to government data released on Monday, India's annual wholesale price inflation fell to 11.16 percent in July from 12.07 percent the previous month, owing to smaller rises in the cost of fuel and food.
Food costs increased 4.46 percent year over year in July, compared to 6.66 percent the previous month, while fuel prices increased 26.02 percent year over year, compared to 32.83 percent in June, according to the data.
The WPI inflation in July was also aided by a low-base effect, as it was negative 0.25 percent in the same month in 2020.
In July 2021 (over July 2020), the annual rate of inflation is 11.16 percent (provisional), compared to (-0.25 percent) in July 2020.
The high rate of inflation in July 2021 is primarily due to a low base effect and increases in the prices of crude petroleum and natural gas, mineral oils, manufactured goods such as basic metals, food, textiles, chemicals and chemical products, and other items when compared to the previous year's corresponding month.