RTTNews | Aug 16, 2021 05:24AM EDT

05:23 Monday, August 16, 2021 (RTTNews.com) - India's wholesale price inflation slowed further in July after crossing 12 percent for the first time in the past few months, official data showed Monday.

The wholesale price index rose 11.16 percent year-on-year following a 12.07 percent increase in June, data from the Ministry of Commerce and Industry showed. In May, inflation was 13.11 percent.

Economists had forecast an 11.30 percent increase. In July 2020, wholesale prices fell 0.25 percent.

The high rate of inflation in July this year is primarily due to low base effect and rise in prices of crude petroleum & natural gas, mineral oils, manufactured products like basic metals, food products, textiles, chemicals and chemical products, the ministry said.

Compared to the previous month, the WPI climbed 0.60 percent in July, same as in the previous month.

"The drop in India's headline wholesale price inflation in July came on the back of an easing in fuel and food inflation, both of which have further to run," Capital Economics economist Darren Aw said.

"And with headline CPI inflation having already peaked, we remain comfortable with our view that policy rate hikes will not come onto the agenda until well into next year."

Official data showed last week that consumer price inflation eased to 5.59 percent in July from 6.26 percent in June.

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