Wholesale price inflation inches higher to 4.86% in June

India’s wholesale price-based inflation in June came in lower than expected at 4.84 percent, likely lending a relief to the government reeling under declining factory output and high retail inflation.

The number was however higher than the May figure of 4.7 percent.

According to the data released by the government, primary articles inflation during the month came in at 8.14 percent against 6.65 percent in May and food inflation at 9.74 percent against 8.29 percent.

Fuel and power inflation during the month stood at 7.12 percent from 7.32 percent a month ago.

[caption id=“attachment_955521” align=“alignleft” width=“380”] According to the data released by the government, primary articles inflation during the month came in at 8.14 percent against 6.65 percent in May and food inflation at 9.74 percent against 8.29 percent.
AFP[/caption]

More from Economy

Inflation likely to be a big focus area for budget 2024, say sources Explained: Will the Bank of Japan break tradition and raise interest rates?

The government also revised downwards the April print to 4.77 percent from 4.89 percent.

Core inflation, which the RBI is more concerned about, fell further to 2 percent from 2.4 percent in May.

“Inflation seems to be stabilising, Prime Minister’s Economic Advisory Council Chairman C Rangarajan told CNBC-TV18.

The uptick in the price was mainly due to the food group, he said and hoped that this will moderate going forward as the monsoons have been good this year.

He expected the depreciating rupee to have an impact on the manufactured inflation. However, he said the performance of the sector will be more dependent on the level of investment and not on the inflation.

He also said more than anything else the RBI will consider the external factors while taking a decision on policy rates.

Read the entire press release here.