Millennium Post

WPI inflation contracts 1.81% in June

New Delhi: Prices in the wholesale market fell for the third straight month, declining 1.81 per cent in June, due to sharp decline in fuel and power items even as food articles remained expensive.

Inflation in May and April was (-) 3.21 per cent and (-) 1.57 per cent, respectively. In March it was 0.42 per cent.

"The annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at (-1.81 per cent) (provisional) for the month of June, 2020 as compared to 2.02 per cent during the corresponding month of the previous year," the industry ministry said in a statement on Tuesday. However, prices of food articles hardened with inflation at 2.04 per cent, as against 1.13 per cent in May.

While inflation in vegetables and onion stood at (-) 9.21 per cent and (-) 15.27 per cent, respectively; potato saw a spike in prices with inflation at 56.20 per cent. Pulses too saw rise in cost with inflation at 10.10 per cent, while the same for wheat was 5.17 per cent during June.

In the fuel and power basket, inflation stood at (-) 13.60 per cent in June, against 19.83 per cent in the previous month.

Manufactured products witnessed inflation of 0.08 per cent in June, against (-) 0.42 per cent in May. Retail inflation as measured by CPI increased to 6.09 per cent in June, which is higher than RBI's tolerance level.

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