Wholesale inflation dips to 12.07 per cent in June

Lower food prices helped to sequentially lower India’s annual inflation rate based on wholesale prices in June. However, the rate of inflation remained worryingly above the 12 per cent mark.

The WPI was recorded at 12.94 percent in May and 12.07 percent in June.
In June 2020, the monthly rate of inflation stood at minus 1.81 percent.
On a sequential basis, the month-on-month change in the WPI index for June 2021 as compared to May was 0.75 per cent.

In a statement on WPI, the Ministry of Commerce and Industry said, the higher rate of inflation in June 2021 as compared to corresponding month last year mainly due to lower base effect and mineral oils such as petrol, diesel (HSD), naphtha, ATF, furnace oil etc. and base metals, due to increase in the prices of manufactured products like food products.

The reason for the low base effect is attributed to last year’s complete nationwide lockdown, which was imposed to contain the spread of the COVID-19 pandemic.