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
|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|
Note: Base Year to be revised.
News source: TH