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Wholesale inflation in June at 0.9 pct; marks lowest since July 2016

ANI  |  New Delhi [India] 

The Wholesale Price Index (WPI) numbers on Friday softened to 0.90 percent during June, marking the lowest in 11 months.

Driven by plunging food prices, the latest price data released by the commerce ministry shows that food prices, especially pulses, vegetables, potato, and onion continued to fall for the fourth consecutive month owing to a supply glut.

However, the wholesale remained low in the month of May touching 2.17 percent and (-)0.09 percent in June last year.

On the other hand, the Wholesale rate, measured by WPI, witnessed a slump in prices of vegetables, cereals, oilseeds, potatoes, pulses, and onions have led to a decline in the index for 'primary articles'.

The low wholesale numbers sustained decline in prices of vegetables, potatoes and onions have been worrisome as these do not attract minimum support price (MSP), where the purchases crops from the farmers, irrespective how steep or low the prices of crops are.

On the other hand, the Retail and wholesale continued to remain identical in June due to similar reason-massive decline in food prices. India's retail rate fell to a record low of 1.54 percent.

Potato prices plummeted (-) 47.32 percent in June, as against a growth 81 percent last year, while that of food articles fell (-) 3.47 percent from 7.78 percent the year before.

Also, the prices of onions fell (-)9.47 percent in June as compared with (-) 39.52 percent last year, while prices of pulses slumped (-) 25.47 percent from a growth of 27.35 percent year ago. Prices of non-food articles fell (-) 5.15 percent, compared with 6.15 percent a year ago.

Fuel and power stood at 5.28 percent as against (-) 11.62 percent last year.

Prices of leather and leather related products also declined (-) 3.15 percent, compared with a growth of 1.23 percent year ago.

The baseline change for the was much needed, in order to capture structural changes in the economy and improve the quality, coverage and representatives of indices. has undergone seven revisions in base year, from time to time.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, July 14 2017. 16:57 IST