- According to official data released:
- The annual wholesale price index-based (WPI) inflation fell to 5.4% from 6%.
- Despite this and the restrictions on exports of key kitchen commodities, the price of vegetables remained elevated with the inflation rates for potatoes at 12.22% and for onions at 16%.
- The drought warnings may lead to a sustained increase in food prices despite the govt claiming adequate food grain stocks.
- Retail inflation fell to 7.31% driven by the lower prices of vegetables, cereals and meat.
- The rate of price rise in vegetables, egg, fish and meat has reduced.
- Fruit inflation, food and beverages inflation all fell considerably.
- The WPI for fuel grew at 9% and since India imports 75% of its crude oil requirements global fuel price will also add pressure to the inflation. Even Brent crude rose above $106 a barrel on Monday over the ongoing tensions in Libya and Iraq.
- The rate of price rise in fuel and light was lesser in comparison to May.
- The corresponding provisional inflation rates for rural and urban areas for June are: 7.72 per cent and 6.82 per cent compared to 8.86 per cent and 7.55 per cent in May, respectively.
- The Confederation of Indian Industry (CII) that despite a marginal rise manufacturing inflation, items such as rice, wheat, vegetables, onions, among others had shown a decline. This is a positive signal that the structural bottlenecks are slowly receding.
- Read at:http://www.thehindu.com/todays-paper/tp-business/wpi-inflation-eases-to-54-in-june/article6210810.ece