WHOLESALE INFLATION EASES MARGINALLY TO 12.07% IN JUNE
Wholesale inflation eases to 12.07% in June, also helped by fuel, power
India’s wholesale inflation continued to remain elevated, even as it moderated to 12.07 per cent in June from a record high of 12.94 per cent in May, the government data released on Wednesday showed. Wholesale prices, whose increase or decline is measured by the wholesale price index, had witnessed deflation at (-) 1.81 per cent in June 2020.
India’s wholesale inflation continued to remain elevated, even as it moderated to 12.07 per cent in June from a record high of 12.94 per cent in May. This is amid a sustained rise in fuel and commodity prices, data released on Wednesday by the government showed.
Wholesale prices, whose increase or decline is measured by the wholesale price index (WPI), witnessed deflation at (-) 1.81 per cent in June 2020.
“The high rate of inflation in June 2021 is primarily due to the low-base effect and rise in prices of mineral oils, that is, petrol, diesel, naphtha, ATF and furnace oil, manufactured products like basic metal, food products and chemical products, among others, as compared to the corresponding month of the previous year,” an official statement said.
Wholesale inflation has been on the rise since January, with June being the third consecutive month in which the inflation has been more than 10 per cent.
“Firstly, wholesale inflation with 2011-12 base had not seen double-digit inflation prior to April 2021 and secondly such elevated levels of inflation for three consecutive months was also not witnessed earlier. The highest level to which wholesale inflation had reached was during January 2013-March 2013 and remained in the range of 8-8.6 per cent,” said Sunil Kumar Sinha, principal economist, India Ratings & Research.
Food prices fell to 3.1 per cent in June from 4.31 per cent in May and 2.1 per cent in June 2020. Fuel and power inflation, which has been on an elevated level since March, stood at 32.83 per cent in June as compared to 37.61 per cent a month ago.
Primary articles, which account for more than a fifth of the entire wholesale price index, grew 7.74 per cent in June compared to 9.6 per cent in May and (-) 0.1 per cent a year ago. Prices of items such as pulses, eggs, meat and fish remained elevated, even as it declined sequentially.