New Delhi: Inflation based on wholesale prices (WPI) declined marginally to 12.07 per cent in June on softening crude and food prices. However, WPI remained in double digits for the third consecutive month in June, mainly due to lower base of last year. WPI inflation was down to minus 1.81 per cent in June 2020.
Inflation based on the Wholesale Price Index (WPI) moderated in June after five consecutive months of rise on softness in food articles and crude oil prices, despite continued inflation in manufactured products.
Experts said that with WPI inflation and retail inflation remaining in the double digits, monetary policy may see pressure in the coming times. He also said that the WPI is expected to remain at a higher level till October 2021. “The annual rate of inflation stands at 12.07 per cent for June 2021 (as compared to June 2020), down from minus 1.81 per cent in June 2020,” the commerce ministry said in a statement.
“The higher rate of inflation in June 2021 was mainly due to low base effect and low base effect and also due to low base effect and mineral oils such as Petrol, Diesel (HSD), Naphtha, ATF, Furnace Oil and Manufactured Products like Basic Metals, Food Products, Chemical Products,” the statement said. This is because of the increase in prices.”
Inflation in fuel and power declined to 32.83 per cent during the period under review, from 37.61 per cent in May. Similarly, inflation in food articles also declined to 3.09 per cent in June from 4.31 per cent in May. However, onions became costlier during this period.
Inflation in manufactured products stood at 10.88 per cent in June as against 10.83 per cent in the previous month. ICRA Chief Economist Aditi Nair said the moderation in WPI inflation is expected to continue, though it will remain in double digits in the September quarter.
Industry body PHDCCI President Sanjay Aggarwal said that due to costly fuel and power, inflation is increasing the cost of the industry, which is affecting its competitiveness in domestic and international markets.(agency)