Wholesale inflation in India falls to -4.12%
14 Jul 2023 14:57:40
New Delhi, Jul 14: Easing prices of energy-related items, textiles, and certain food products helped India's wholesale price index-based inflation decline for the third month in a row in June to 4.12% compared with a 3.48% fall in May, data released by the Commerce and industry ministry showed on Friday.
The WPI-based inflation stood at 16.23% in June 2022. Fuel and power inflation witnessed a sharp decline at 12.63%, compared with 9.17% in the previous month. Manufactured products inf stood at 2.71% in June, slightly higher than the 2.97% recorded in May. Food inflation was at 1.24% in June against 1.59 % in the previous month.
India's wholesale prices remained in the deflationary zone for the third month in a row in June, data released on July 14 by the commerce ministry showed, with Wholesale Price Index (WPI) inflation falling further to -4.12 percent from -3.48 percent in May.
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"The decline in the rate of inflation in June 2023 is primarily due to a fall in prices of mineral oils, food products, basic metals, crude petroleum & natural gas, and textiles," the official statement said. Interestingly, retail inflation during June rose to a higher-than-expected 4.81%, driven by rising food and vegetable prices. While the inflation number has remained within the central bank’s upper tolerance band of 6%, it is still above the 4% medium-term target.
Earlier this month, the Reserve Bank of India (RBI) had left the repo rate unchanged at 6.50% for the second consecutive monetary policy amid easing inflation headline inflation.