India’s wholesale inflation softened to 0.90 percent during June, lowest in 11 months, driven by plunging food prices.
Latest price data released by the commerce ministry today showed that food prices, especially pulses, vegetables, potato, and onion continued to fall for the fourth consecutive month owing to a supply glut. Wholesale inflation remained low in May touching 2.17 percent and (-)0.09 percent in June last year.
Retail and wholesale inflation continued to remain identical in June due to similar reason—massive decline in food prices. India’s retail inflation rate fell to a record low of 1.54 percent.
Prices potato 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.
Similarly, 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 inflation stood at 5.28 percent as against (-) 11.62 percent last year.
The weightage of primary articles have been increased to 22.6 percent, with the new base year, compared with 20.12 percent.
The index of manufactured products, which accounts for 64.23 percent of WPI rose 2.55 percent in May from (-)0.63percent.