Wholesale price inflation hits 4-year high in June at 5.77%

Marco Green
July 16, 2018

Price rise in onion was 18.25 per cent during June, as against 13.20 per cent in the preceding month.

Wholesale price inflation for the month of June rose to 5.77% from 4.43% in May, data released by the Ministry of Commerce and Industry showed on Monday.

Inflation in manufactured products stood at 4.17 per cent in June against 3.73 per cent in May.

Data released last week showed retail inflation scaled a 5-month high of 5 per cent in June on costlier fuel. This is the highest inflation rate in 15 months.

According to the government data, inflation in food articles stood at 1.80 per cent in June 2018, as against 1.60 per cent in the preceding month.

Fuel and power inflation, which has a weightage of 13.15 percent in WPI, grew at 16.18 percent in June from 11.22 percent in May.

Potato inflation was at a peak of 99.02 per cent, against 81.93 per cent in May.

Prices of pulses have continued to slump for over a year now, with rate of decline relatively slowing at (-) 20.23 percent in June, as compared with a de-growth of (-) 21.13 percent in May.

The WPI numbers came in way higher than estimates pegged at 4.93%. The RBI governor headed Monetary Policy Committee will be meeting later this month to review interest rate regime.

WPI was at 0.90% in the same month a year ago. The apex bank has revised upwards its retail inflation projection for October-March to 4.7% from 4.4% earlier.

While inflation in the primary articles component of the Index quickened to 5.3% in June from 3.16% in May, this was not due to food price inflation, which accelerated only marginally to 1.8% from 1.6% over the same period.

The price of Indian basket of crude surged from Dollars 66 a barrel in April to around USD 74 now.

Other reports by Click Lancashire

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