PTI
New Delhi, July 14
The wholesale price-based inflation eased to a three-month low of 15.18% in June on a sharp decline in the prices of minerals, but food articles continued to remain costly.
June is the 15th consecutive month when the Wholesale Price Index (WPI) based inflation remained in double-digit. Last month, it touched a record high of 15.88%. In June 2021, it was 12.07%.
In double digit for 15th straight month
- June is the 15th consecutive month when the Wholesale Price Index (WPI)-based inflation remained in double-digit. Last month, it touched a record high of 15.88%
- Inflation in food articles was 14.39%, as prices of vegetables, fruits and potato witnessed a sharp spike over the year-ago period
- The rate of price rise in vegetables was 56.75%, while in potato and fruits, it was 39.38 and 20.33%, respectively
Inflation in food articles in June was 14.39%, as prices of vegetables, fruits and potato witnessed a sharp spike over the year-ago period. In May, the wholesale price inflation in food articles was 12.34%.
The rate of price rise in vegetables was 56.75%, while in potato and fruits, it was 39.38 and 20.33%, respectively. The WPI inflation in minerals dropped sharply to 8.55% in June from 33.94% in May.
In the fuel and power basket, inflation was 40.38%, while in manufactured products and oil seeds, it was 9.19% and 2.74%, respectively. Inflation in crude petroleum and natural gas was 77.29% in June.
Icra chief economist Aditi Nayar said minerals and basic metals displayed a sharp month-on-month correction in June 2022, as fears of an impending global recession unfolded, dampening commodity prices.
“We expect the WPI inflation to ease to 13% in July 2022, reflecting the ongoing correction in global commodity and fuel prices as well as domestic food prices,” Nayar said.
She said the RBI could hike interest rates by 60 bps over the next two reviews, taking the repo rate to 5.5% by September 2022, followed by a pause to ascertain the momentum of economic growth.
CRCL LLP CEO and managing partner DRE Reddy said the key reason for the high inflation level is rising food, fuel, and vegetable prices. The cut in excise duty announced by the government and good monsoon year may ease inflation a little as we move forward in the year.
“The geopolitical tensions and crude price movement and commodity prices will guide WPI inflation going forward,” he added.
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