Data released by the Union ministry of commerce and industry on Wednesday showed that the wholesale price index (WPI)-based inflation eased marginally to 12.07% for the month of June, as against the corresponding figure for May, when it was recorded at 12.94%. WPI for June, however, is still higher in comparison to where it was in April, at 10.49%.
“The high rate of inflation in 2021 is primarily due to the low base effect and a rise in the price of mineral oils viz petrol, diesel, naphtha, ATF, furnace oil etc. The rate is high also due to the same effect on manufactured products like basic metal, food products, chemical products, etc. as compared to the corresponding month of the previous year,” the commerce ministry explained in a statement.
The ministry also released inflation rates for various other sectors. The data showed that inflation in fuel and power basket eased to 32.83% in June, while in May, it was at 37.67%. Similarly, inflation in food articles, too, witnessed a fall, and was recorded at 3.09%, down from 4.31% in May. However, inflation in manufactured products went its separate way, and was at 10.88% during June, up marginally from 10.83% in May.
A set of data released earlier this week showed showed that retail inflation was at 6.26% in June, staying above the Reserve Bank of India’s (RBI) comfort level of 6% for a second consecutive month.
The RBI, in its monetary policy announcement last month, kept interest rates unchanged at record lows.
(With PTI inputs)