Wholesale Price Inflation Holds Above 12%

Provisional figures of Wholesale Price Index (WPI) revealed today that the annual rate of inflation is 12.07% for the month of June, 2021 (over June, 2020) as compared to- 1.81% in June 2020. The high rate of inflation in June 2021 is primarily due to low base effect and rise in prices of mineral oils viz. petrol, diesel (HSD), naphtha, ATF, furnace oil etc, and manufactured products like basic metal, food products, chemical products etc as compared the corresponding month of the previous year. The month over month change in WPI index for the month of June 2021 (as compared to May 2021) was 0.75 %.

Primary Articles index increased by 0.86 % to 151.8 (Provisional) in June, 2021 from 150.5 (Provisional) for the month of May, 2021. Prices of non-food articles (2.55%); crude petroleum & natural gas (2.33 %); minerals (0.98%) and food articles (0.31%) increased in June 2021 compared to May 2021.
Fuel & Power index increased by 2.90 % to 113.7 (Provisional) in June, 2021 from 110.5 (Provisional) for the month of May, 2021. Prices of Mineral Oils increased by 4.91 % in June, 2021 as compared to May, 2021. Manufactured Products index increased by 0.38 % to 131.5 (Provisional) in June, 2021 as compared to 131.0 in May, 2021. Out of the 22 NIC two-digit groups for manufactured products, 11 groups have witnessed increase in prices, 8 groups have witnessed decrease in June 2021 as compared to May 2021 and for 3 groups the prices remained unchanged.

The Food Index consisting of 'Food Articles' from Primary Articles group and 'Food Products' from Manufactured Products group have remained unchanged at 158.6 in June, 2021 as compared to May, 2021.The rate of inflation based on WPI Food Index decreased from 8.11 % in May, 2021 to 6.66 % in June, 2021.

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