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Inflation eases in July
17 August 2011: Despite the moderating trend in headline inflation, the continuing price pressures in manufactured goods raises the odds that the central bank will continue its monetary tightening to curb prices further.
The annual Wholesale Price Index-based inflation for July rose 9.22 per cent in July, slightly slower than June's 9.44 per cent year-on-year growth.
According to data released by the Government on Thursday, the final inflation estimates for May were revised upwards to 9.56 per cent from the provisional estimate of 9.06 per cent. In April too, the final estimate was sharply revised upwards to 9.74 per cent from 8.66 per cent.
According to the latest data, on an annual basis, food inflation rose by 8.19 per cent in July, lower than the 8.38 per cent recorded in June. This was despite a sharp surge in prices of vegetables such as onions.
Inflation in the manufactured products group rose by 7.49 per cent in July, up from the 7.43 per cent in June. There was a surge in the index level of 10 of the 12 sub-groups of manufactured products during July as compared to the previous reported month. The base effect ensured that fuel inflation moderated to 12.04 per cent from 12.67 per cent in June, despite a fuel price hike.
Source: Hindu Business Line