India’s WPI inflation eases in June; food, crude prices soften

WPI inflation, Retail inflation

The country’s Wholesale Price Inflation (WPI) eased marginally to 12.07 per cent in June as crude oil and food items witnessed some softening in prices.

However, WPI inflation remained double-digit for the third consecutive month in June, mainly due to last year’s low base. WPI inflation was (-) 1.81 per cent, in June 2020.

Snapping the five straight months of uptick, the wholesale price index (WPI)-based inflation in June softened as prices of food articles and crude oil eased, even though manufactured products hardened.

“The annual rate of inflation is 12.07 per cent for June, 2021 (over June, 2020) as compared to 1.81 per cent in June 2020.

“The high rate of inflation in June 2021, is primarily due to low base effect and rise in prices of mineral oils viz petrol, diesel (HSD), naphtha, ATF, furnace oil etc, and manufactured products like basic metal, food products, chemical products etc as compared the corresponding month of the previous year,” the Commerce and Industry Ministry said.

Inflation in fuel and power basket eased to 32.83 per cent during June, against 37.61 per cent in May.

Inflation in food articles too eased to 3.09 per cent in June, from 4.31 per cent in May, even as onion prices spiked.

In manufactured products, inflation stood at 10.88 per cent in June, against 10.83 per cent in the previous month.

The RBI, in its monetary policy last month, kept interest rates unchanged at record lows and committed to maintaining an accommodative policy stance to support growth.

Retail inflation remained above the RBI’s comfort level of 6 per cent for the second straight month at 6.26 per cent in June; data released earlier this week showed.

https://www.thestatesman.com/business/indias-wpi-inflation-eases-june-food-crude-prices-soften-1502981887.html

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