WPI Inflation For June Falls Marginally To 15.18%

According to information made public by the Ministry of Commerce & Industry, wholesale inflation in India decreased in June to 15.18 per cent.

According to the report, the wholesale pricing index (WPI) increased to 15.88% in May while the April WPI was revised upward to 15.38 per cent from 15.08 per cent. In June 2021, the WPI was 12.07 per cent.

Starting in April 2021, the WPI inflation rate has stayed above 10 per cent for 15 straight months.

"The high rate of inflation in June 2022 is primarily due to rise in prices of mineral oils, food articles, crude petroleum & natural gas, basic metals, chemicals & chemical products, food products etc. as compared to the corresponding month of the previous year," the government said in its press release.

According to the data, there was a 14.39 per cent increase in June in the market for food products. It was 12.34 per cent in the month before that. The increase month over month can be linked to an increase in the cost of vegetables.
In June, vegetable prices increased 56.75 per cent compared to 56.36 per cent in May, according to the report. While onion prices decreased (-)31.54 per cent, potato prices increased by 39.38 per cent. Fruits prices increased by 20.33 per cent last month from 9.98 per cent in May, while milk prices increased by 6.35 per cent from 5.81 per cent the previous month. Prices for eggs, meat, and fish increased by 7.24 per cent in June, down from 7.78 per cent a month earlier, while cereal prices increased by 7.99 per cent, somewhat less than the previous month's 8.01 per cent increase.

From 40.62 per cent in May, the gasoline and power segment decreased to 40.38 per cent last month. Petrol prices decreased to 57.82 per cent from 58.78 per cent a month earlier, HSD (High-Speed Diesel) prices decreased to 54.93% from 65.23%, while LPG prices increased to 53.20% from 47.71 per cent. From 10.11% in May, the manufactured products segment's growth slowed to 9.19 per cent in June.

DRE. Reddy, CEO and Managing Partner at CRCL LLP has said, "The wholesale inflation level has softened a bit if compared month on month. But it has remained in double digits for 15 straight months. 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."

He added, "High input cost will lead to producers passing it on to the end consumers, leading to pressure on CPI inflation as well. The geopolitical tensions and crude price movement, and commodity prices will guide WPI inflation going forward."