WPI inflation for June increases to 3.36% due to food, fuel, manufacturing prices

WPI inflation in June: Wholesale inflation increased to 3.36 per cent in the month of June from 2.61 per cent in the month of May. WPI inflation has been on a gradual increase, with the figures recorded at 1.26 per cent in April and 0.53 per cent in March before that. 

The Ministry of Commerce & Industry said that the positive rate of inflation in June is primarily due to an increase in prices of food articles, manufacture of food products, crude petroleum & natural gas, mineral oils, other manufacturing etc. 

The month-over-month change in WPI for June stood at 0.39 per cent as compared to May. 

The WPI Food Index, consisting of food articles from the primary group that includes cereals, paddy, wheat, pulses, vegetables, potato, onion, fruits, milk, eggs, meat and fish, and food products from manufactured products group increased 8.68 per cent from 185.7 in May to 190.3 in June. 

When it comes to the primary articles index, it increased 2.08 per cent to 191.6 in June from 187.7 in May. Prices of food articles and minerals increased by 2.96 per cent and 1.47 per cent in June, as compared to May, while prices of non-food articles and crude petroleum and natural gas declined by 0.32 per cent and 0.57 per cent in June over May. 

The fuel and power index declined by 1.93 per cent to 147.7 in June from 150.6 in May. Prices of electricity and mineral oils declined 1.67 per cent and 2.38 per cent in June as compared to May.

The index for the manufactured products major group increased by 0.14 per cent to 141.9 in June from 141.7 for the month of May.

Meanwhile, India's retail inflation rate rose for the first time in five months in June due to a sharp rise in food prices, as per government data, released on Friday. Policymakers have failed to cap prices of key food items, hit by extreme heat and heavy floods in India's northern states.