New Delhi : An exponential rise in food and fuel prices pushed up India’s two key inflation gauges — wholesale price index and consumer price index— in July, official data showed on Monday. The annual rate of inflation based on wholesale prices went up in July 2017 to 1.88 per cent from 0.90 per cent in June.
On a year-on-year (YoY) basis, the WPI had risen by 0.63 per cent in July 2016. Similarly, July’s retail or CPI-based inflation edged up by 2.36 per cent from 1.46 per cent in June. However, on a YoY basis, it was lower than the 6.07 per cent CPI rate reported for the corresponding month of last year.
The upward trend in both the inflation gauges was led by a surge in food and fuel prices. The wholesale inflation for food articles rose massively by 2.15 per cent from a deceleration of (-)3.47 per cent during June 2017 and a rise of eight per cent in July 2017.
On a sequential basis, the Consumer Food Price Index (CFPI) rose by 3.21 per cent during the month under review when compared to June 2017. The data on a YoY basis, showed that cereals prices in July edged higher by 3.97 per cent, and meat and fish recorded a sharp rise of 3.19 per cent. Food and beverages during the month under consideration recorded a marginal rise of 0.43 per cent over the same month last year.
Among non-food categories, ‘fuel and light’ segment’s inflation rate accelerated to 4.86 per cent in July. The rural CPI YoY ruled higher at 2.41 per cent, whereas in urban areas it was at 2.17 per cent.
In terms of food prices, the wholesale inflation rate for onion was lower year-on-year by (-)9.50 per cent, while that for potatoes plunged by (-)42.45 per cent. In contrast, the overall, vegetable prices in July rose by 21.95 per cent, against a rise of 12.59 per cent in the same month a year ago. As per the data, on YoY basis, wheat became cheaper by (-)1.16 per cent, while protein-based food items such as eggs, meat and fish became dearer by 3.30 per cent.