Inflation remains above 6% in June 2021


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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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