WPI Inflation: Wholesale inflation rate increased for the fourth consecutive month, crossed 3% in June, the effect of expensive food items

The wholesale inflation rate has increased for the fourth consecutive month in the country. Inflation rate increased to 3.36 percent in June. Wholesale inflation rate increased continuously due to the rise in prices of vegetables and other food items. The inflation rate based on Wholesale Price Index (WPI) was 2.61 percent in May. In the same month last year i.e. in June 2023, this rate was 4.18% below zero.

Inflation rate of vegetables was 38.76% in June

The Ministry of Commerce and Industry said in a statement on Monday that the main reason for the increase in inflation rate in June 2024 was the increase in the prices of food items, manufacturing of food products, raw chemicals and natural gas, mineral oil, among others. According to the data, the inflation rate of food items increased by 10.87 percent in June, while it was 9.82 percent in May.The inflation rate of vegetables was 38.76 percent in June, which was 32.42 percent in May. The inflation rate of onion was 93.35 percent, while the inflation rate of potato was 66.37 percent. The inflation rate of pulses was 21.64 percent in June. The inflation rate in the fuel and electricity sector was 1.03 percent, which is slightly less than 1.35 percent in May.

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last monthInflation rate in manufactured productsIt was 1.43 percent, which was higher than 0.78 percent in May. The increase in the wholesale price index in June was in line with the retail inflation rate data for the month. According to the data released last week, the retail inflation rate rose to a four-month high of 5.1 percent in June. The Reserve Bank of India (RBI) mainly takes into account the retail inflation rate while formulating the monetary policy.

Retail inflation at 4-month high in June

According to government data released on Friday, retail inflation in June rose to a 4-month high of 5.08 percent due to rising prices of food items, especially vegetables and other food products. The retail inflation rate based on the Consumer Price Index (CPI) was declining since January, but it once again saw a rise in the month of June. According to data released by the National Statistical Office (NSO), the inflation rate of products included in the food group increased to 9.36 percent in June. Food inflation was 8.69 percent in May. In the month of June, which was affected by severe heat, vegetable prices rose the most by 29.32 percent on an annual basis. After that, the inflation rate in ‘pulses and products’ was 16.07 percent. According to the NSO, the highest inflation rate in June was in Odisha (7.22 percent) and the lowest in Delhi (2.18 percent).