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WPI Inflation Marginally Eases to 12.07% in June; Food, Crude Prices Soften

According to the government, high rate of inflation in June 2021 is primarily due to low base effect and rise in prices of petrol, diesel, food products, chemical products etc.
Representative image. Credit: Reuters

New Delhi: The wholesale price-based inflation eased marginally to 12.07% in June as crude oil and food items witnessed some softening in prices.

However, WPI inflation remained in double digits for the third consecutive month in June, mainly due to a low base of last year. WPI inflation was (-) 1.81%, in June 2020.

Snapping the five straight months of uptick, the wholesale price index (WPI)-based inflation in June softened as prices of food articles and crude oil eased, even though manufactured products hardened.

“The annual rate of inflation is 12.07% for the month of June 2021 (over June 2020) as compared to 1.81% in June 2020.

“The high rate of inflation in June 2021 is primarily due to low base effect and rise in prices of mineral oils viz petrol, diesel (HSD), naphtha, ATF, furnace oil etc, and manufactured products like basic metal, food products, chemical products etc as compared the corresponding month of the previous year,” the commerce and industry ministry said.

Inflation in fuel and power basket eased to 32.83% during June, against 37.61% in May.

Inflation in food articles too eased to 3.09% in June, from 4.31% in May, even as onion prices spiked.

In manufactured products, inflation stood at 10.88% in June, against 10.83% in the previous month.

The Reserve Bank of India (RBI) in its monetary policy last month kept interest rates unchanged at record lows and committed to maintain an accommodative policy stance to support growth.

Retail inflation remained above the RBI’s comfort level of 6% for the second straight month at 6.26% in June, data released earlier this week showed.

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