In June 2019, WPI inflation eases to near 2-year low at 2.02 per cent
- IBEF
- July 16, 2019
Wholesale price-based inflation declined for the second successive month to its 23-month low of 2.02 per cent in June, helped by decrease in prices of vegetables just as fuel and power things, as per the data released on Monday.
The Wholesale Price Index (WPI)- based inflation was at 2.45 per cent in May. It was 5.68 per cent in June 2018. In April 2019, WPI inflation data has improved upwards to 3.24 per cent from provisional 3.07 per cent.
inflation in food articles basket facilitated possibly to 6.98 per cent in June, from 6.99 per cent in May. Vegetable inflation mollified to 24.76 per cent in June, down from 33.15 per cent in the earlier month. inflation in potato was (-) 24.27 per cent, against (-) 23.36 per cent in May.
Whereas, onion prices proceeded with the rising pattern with inflation at 16.63 per cent during the month, as against 15.89 per cent in May.
WPI inflation in June is the lowest in 23 months, since July 2017, when it was at 1.88 per cent.
Inflation in 'fuel and power' category cooled considerably to (-) 2.20 per cent, from 0.98 per cent a month ago. manufactured items also observed decrease in prices with inflation at 0.94 per cent in June, against 1.28 per cent in May.
WPI inflation data for April has been modified upwards to 3.24 per cent from provisional 3.07 per cent. the retail inflation spiked to a six-month high of 3.18 per cent in June, on costlier food items.
The Reserve Bank of India (RBI), which mainly factors in retail inflation for monetary strategy decision, on June 6, brought down its benchmark lending rate to about a nine-year low of 5.75 per cent, even as it increased its inflation projection to 3-3.1 per cent for the first half of 2019-20.
flagging uncertain rainstorm, unseasonal spike in vegetable prices, crude oil prices, financial market instability and financial situation as risk to inflation, the RBI anticipated upward inclination in food inflation in near term.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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