India's wholesale price inflation at an 8-month low of 0.90% in June

news
14 July 2017

Wholesale price inflation in the country based on the wholesale price index fell to an eight-month low of 0.90 per cent in June, on the back of a fall in the prices of food articles, including vegetables.    

Inflation based on the wholesale price index (WPI) was 2.17 per cent in May 2017 and (-) 0.09 per cent in June 2016.    

Build-up of inflation rate in the financial year so far was (-) 0.44 per cent compared to a build up rate of 3.71 per cent in the corresponding period of the previous year.

Along with the slowing of wholesale price inflation comes consumer price inflation has also eased to a record low of 1.54 per cent in June.    

The WPI figure is at the lowest level in at least eight months - since the availability of data for the new 2011-12 base year series.    

The government data released today showed that prices of food articles contracted by 3.47 per cent in June on a yearly basis. Vegetable inflation stood at (-) 21.16 per cent.     

Potato saw a maximum price fall of 47.32 per cent, followed by pulses at 25.47 per cent. Onion prices were down 9.47 per cent in June.    

The rate of price increase was 1.93 per cent in cereals while that of protein-rich items like egg, meat and fish was 1.92 per cent during the month.    

Fuel and power prices saw some cooling at 5.28 per cent, from 11.69 per cent in May. Manufactured product inflation stood at 2.27 per cent.    

WPI inflation is calculated on the basis of 2011-12 as the base year. It was revised in May from 2004-05 with an aim to reflect the macroeconomic picture more accurately.     

The index basket of the new series has a total of 697 items, including 117 for primary articles, 16 for fuel and power and 564 for manufactured products.





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