For the second month in a row, wholesale inflation eased to 11.12 per cent in July

New delhi date. 13

Wholesale price inflation eased for the second month in a row in July on falling food prices. Wholesale price-based inflation stood at 11.15 per cent in July. However, July saw a rise in prices of manufacturing items and crude oil.

Wholesale price-based inflation in July has been in double digits for the fourth consecutive month due to last year's low base effect. Inflation, as measured by the Wholesale Price Index (WPI), was minus 0.2 per cent in July 2010.

The Ministry of Commerce and Industry said in a statement that the lower base effect, lower prices of crude oil, natural gas, manufacturing, textiles and chemicals were due to higher wholesale prices based on wholesale price inflation in July 2011.

For the third month in a row, food prices have declined. Food inflation stood at zero per cent in July. It was 8.09 per cent in June. However, July saw a rise in onion prices. Onion prices rose by 3.01 per cent in July.

Crude oil and natural gas prices rose 30.2 per cent in July. It was 4.5 per cent in June. Inflation in manufacturing stood at 11.50 per cent in July. It was 10.8 per cent in June.

Wholesale price-based inflation stood at 10.6 per cent in April. It rose to a record high of 19.11 per cent in May. Inflation had eased to 12.05 per cent in June.

According to Icara chief economist Aditi Nair, wholesale price-based inflation will remain in double digits till October 2021.