India’s wholesale price index inflation surges to 16-month high in June

New Delhi: India’s wholesale price index (WPI) inflation soared to 3.36% in June. This is the  highest in 16 months. The surge was  primarily due to increased prices of food articles and manufactured goods. This was a significant rise from 2.61% in May and a stark contrast to the -4.18% seen in June 2023. The last peak was 3.85% in February 2023.

According to the Ministry of Commerce & Industry, the inflation spike was driven by costlier food articles, crude petroleum, natural gas, and manufactured goods. Food article inflation surged to 10.87% in June from 9.82% in May. Vegetable inflation was particularly high, at 38.76%, with onions at 93.35% and potatoes at 66.37%. Pulses also saw a significant rise at 21.64%.

Sector-specific increases

Vegetables: 38.76% inflation, up from 32.42% in May.

Onions: 93.35% inflation.

Potatoes: 66.37% inflation.

Pulses: 21.64% inflation.

Fruits: 10.14% inflation.

Cereals: 9.27% inflation.

Milk: 3.37% inflation.

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Inflation in the fuel and power basket slightly decreased to 1.03% from 1.35% in May. However, the inflation for crude petroleum and natural gas remained in double digits at 12.55%.

Inflation in manufactured products rose to 1.43% in June from 0.78% in May, indicating a widespread increase in costs across various sectors.

Meanwhile, India’s retail inflation rate surged to 5.08% in June .The Consumer Price Index (CPI) based retail inflation was 4.8 per cent in May 2024 and 4.87 per cent in June 2023. Inflation in the food basket was 9.36 per cent in June, up from 8.69 per cent in May, according to the data released by the National Statistical Office (NSO).

Wholesale Price Index (WPI) is a measure of the average change in the price of goods at a wholesale level or in the wholesale market. Consumer Price Index (CPI) is a price index that calculates price changes of goods and services that a consumer has to pay in the retail market. The monetary police of Reserve Bank of India are made after reviewing the CPI.