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Inflation remains above 6% in June 2021
Part of: GS Prelims and GS -III – Economy
In news Inflation remained above 6% in June at 6.3%.
- Growth impulses remained fragile with the second COVID-19 wave hurting the recovery momentum.
- Experts opine that lack of policy support from government (Ex: Cutting oil taxes) to bring down inflation could make RBI reverse its growth supporting approach (low interest rates)
- Consumer durables and capital goods stood out as the worst affected sectors in May
Important findings with regard to output/production industries (For May 2021)
| Manufacturing | Decreased to 9.5% |
| Electricity | Decreased to 7% |
| Mining | Increased slightly by 0.6% |
Inflation in different sectors (June 2021)
| Fuel and light | 12.7% |
| Oils and fats | Increased by 34.8% |
| Eggs | Increased by 19.4% |
Do you know?
- There are different indices in India like Wholesale Price Index(WPI), Consumer Price Index(CPI) etc which measure inflation rates in India.
- But what we generally find in headlines as inflation rate in India is Inflation rate based on CPI.
The Difference between WPI and CPI
| Context | WPI | CPI |
| Definition | Amounts to the average change in prices of commodities at the wholesale level. | Indicates the average change in the prices of commodities at the retail level. |
| Publishing office | Office of Economic Advisor (Ministry of Commerce & Industry) | Central Statistics Office (Ministry of Statistics and Programme Implementation) & Labour Bureau |
| Commodities | Goods only | Goods and Services both |
| Base Year | 2011-12 | 2012
Note: Base Year to be revised. |
| Published | Monthly | Monthly |
News source: TH
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