Wholesale Price Index (WPI) inflation % falls in June
Wholesale inflation in the Wholesale Price Index stayed down at 1.32% in June, but there was a 21.98% deflation in vegetables.
Wholesale Price Index (WPI)-based inflation stayed in the negative range for the third straight month in June at -4.12% due to the effect of a high base, despite the recent surge in the costs of vegetables such as tomatoes.
“The decline in the inflation rate in June is primarily due to fall in prices of mineral oils, food products, basic metals, crude petroleum and natural gas and textiles,” confirmed an official release on Friday.
WPI inflation in May 2023 remained at -3.48% and -0.79% in April. But it was much more increased at 16.23% in June 2022. On a month-to-month basis, the WPI index dropped 0.4% in June, reflecting a weaker price rate.
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Although the stats on WPI inflation are not followed by the Monetary Policy Committee of the Reserve Bank of India, it signals how retail inflation will behave over the following several months. Consumer Price Index (CPI)-based inflation increased to 4.81% year-on-year in June, up from 4.31% in May.
Some worries increasing vegetable prices could pressure inflation in the future months, although it would stay within control due to the previous year’s high base.
Wholesale inflation in the food index—which has ‘Food Articles’ from the Primary Articles group and ‘Food Product’ from the Manufactured Products group—even stayed in the deflationary range at -1.24% in June 2023 as against -1.59% in May 2023.
