June inflation rises to 9.44% on fuel price hike
PTI July 14, 2011Headline inflation rose to 9.44 per cent in June on the back of rising prices of fuel and manufactured products, which may prompt the Reserve Bank to raise key rates again in its quarterly policy review later this month.
Inflation, as measured by the Wholesale Price Index (WPI ), stood at 9.06 per cent in May. It was 10.25 per cent in June, 2010.
IIP slows but RBI unlikely to pause
Meanwhile, as per data released by the government on Thursday, the overall inflation figure for April this year has been revised upward to 9.74 per cent from the provisional estimate of 8.66 per cent.
The rise in inflation can partly be attributed to the hike in prices of diesel, cooking gas and kerosene announced by the government on May 24.
The higher prices of petroleum goods, according to experts is adding to supply-side constraints. The index for the fuel and power segment, which has a weight of almost 15 per cent in the WPI basket, stood at 12.85 per cent year-on-year in June. This was up from 12.32 per cent in the previous month.
LPG became 12.17 per cent more expensive on an annual basis, while high speed diesel was up 6.58 per cent. Petrol, whose prices were hiked in April, also became dearer by 30.61 per cent.
Prices of manufactured products, which have a weight of around 65 per cent in the WPI basket, went up by 7.43 per cent year-on-year in June.
Inflation in manufactured products has been steadily rising since February this year, when it crossed the 6 per cent mark. It was 7.27 per cent in May.