WPI dips to 12.1% in June

Wholesale price inflation eased marginally in June but remained in double digits for the third consecutive month, highlighting the price pressures in the economy against the backdrop of the Covid-19 pandemic.

Data released by the department for promotion of industry and internal trade showed inflation, as measured by the wholesale Price Index, eased to 12.1% in June, slower than the 12.9% in May. In the same period last year, it had posted a deflation of 1.8%.

The latest data comes close on the heels of the retail inflation numbers holding steady at 6.3% as price pressures across food, fuel and some services segments remained firm.

The WPI data showed that inflation in the food segments slowed to 3.1% in June, lower than the 4.3% in the previous month. Vegetable prices slowed for the seventh month in a row but onion prices shot up an annual 64% during June. The inflation in the fuel and power segment was at 32.8%, easing from 37.6% in May. Economists have said they expect the RBI to continue with its pause on interest rates.

No comments: