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WPI inflation falls sharply to 0.90% in June, food prices ease

Press Trust of India  |  New Delhi 

Wholesale fell to 0.90 per cent in June -- the lowest in at least eight months -- as prices in food articles, including vegetables, declined.

based on the wholesale price index (WPI) was 2.17 per cent in May 2017 and (-)0.09 per cent in June 2016.

The slowdown in wholesale comes against the backdrop of retail easing to a record low of 1.54 per cent in June.

The figure is at the lowest level in at least eight months -- since the availability of data for the new 2011-12 base year series.

The data released today showed that prices of food articles contracted by 3.47 per cent in June on a yearly basis. Vegetable stood at (-)21.16 per cent.

Potato saw a maximum deflation of 47.32 per cent, followed by pulses at 25.47 per cent. For onion, deflation was 9.47 per cent in June.

The rate of price increase was 1.93 per cent in cereals while that of protein-rich items like egg, meat and fish was 1.92 per cent in June.

Fuel and power segment saw some cooling of at 5.28 per cent, from 11.69 per cent in May. Manufactured product read 2.27 per cent.

Soon after retail hit a record low, Chief Economic Advisor Arvind Subramanian had said there had been a "paradigm shift" in trajectory and that has been "missed by all".

His comments were seen as an apparent reference to the decision of the Monetary Policy Committee, chaired by RBI Governor Urjit Patel, which has kept the key policy rate unchanged so far this year citing pricing pressures.

Besides, industrial production data showed that the growth in factory output slumped to 1.7 per cent in May, from 8 per cent a year ago.

is calculated on the basis of 2011-12 as the base year. It was revised in May from 2004-05 with an aim to reflect the macroeconomic picture more accurately.

The index basket of the new series has a total of 697 items, including 117 for primary articles, 16 for fuel and power and 564 for manufactured products.

The final print of April remained unchanged at 3.85 per cent.

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

First Published: Fri, July 14 2017. 13:02 IST