The wholesale price-based inflation softened for the second straight month to 11.16 per cent in July on cheaper food items, even though prices of manufactured goods and crude oil hardened.
However, WPI inflation remained in double digit for the third consecutive month in July, mainly due to a low base of last year. WPI inflation was (-) 0.25 per cent, 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 and natural gas; mineral oils; manufactured products like basic metals; food products; textiles; chemicals and chemical products etc as compared the corresponding month of the previous year," the Commerce and Industry Ministry said in a statement.
Inflation in food articles eased for the third straight month, and was at ''zero'' per cent in July, down from 3.09 per cent in June, even as onion prices spiked. Inflation in onions was high at 72.01 per cent.
Inflation in crude petroleum and natural gas was 40.28 per cent in July, against 36.34 per cent in June.
In manufactured products, inflation stood at 11.20 per cent in July, against 10.88 per cent in the previous month.
The RBI, which mainly takes into account retail inflation, in its monetary policy last week kept interest rates unchanged at record lows. It projected CPI or retail inflation at 5.7 per cent during 2021-22, up from its earlier projection of 5.1 per cent.
Data released last week showed retail inflation eased to 5.59 per cent in July, mainly due to softening food prices.
