The annual rate of inflation based on the monthly wholesale price index (WPI) dropped to 11.16 percent in July from 12.07 percent in the previous month, government data showed on Monday.
The decline was due to lower increases in the cost of fuel and food items. A low-base effect also contributed to the WPI inflation in July, since it stood at minus 0.25 percent in the corresponding month of 2020.
The rate of food inflation decreased from 6.66 percent in June to 4.46 percent in July. Prices of fuel items were up 26.02 percent year-on-year compared to 32.83 percent in June.
A statement issued by the Ministry of Commerce and Industry said the index for primary articles increased by 1.05 per cent to 153.4 in July from 151.8 for June.
Prices of crude petroleum and natural gas (7.91 percent), non-food articles (2.35 percent), and food articles (0.69 percent) increased in July as compared to June 2021.
Prices of minerals (minus 8.11 percent) declined in July as compared to June.
The index for fuel and power increased by (0.53 percent) to 114.3 from 113.7. Prices of mineral oils (5.41 percent) increased in July as compared to June. Prices of electricity (minus 11.61 percent) declined while prices of coal remain unchanged.
The index for manufactured products increased by 0.38 percent to 132. Out of the 22 NIC two-digit groups for manufactured products, 13 groups witnessed an increase in prices, 8 groups witnessed a decrease and for one group the prices remained unchanged.
The increase in prices was mainly contributed by the 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 witnessed a decrease in prices were the manufacture of pharmaceuticals, medicinal chemical and botanical products; furniture; other manufacturing; rubber and plastics products, and electrical equipment.