WPI inflation eases to 12.07% in June as food, crude prices soften

New Delhi: The wholesale price-based inflation eased marginally to 12.07 percent in June as crude oil and food items witnessed some softening in prices. However, WPI inflation remained double-digit for the third consecutive month in June, mainly due to a low base of last year. WPI inflation was (-) 1.81 percent, in June 2020. Snapping the five straight months of an uptick, the wholesale price index (WPI)-based inflation in June softened as prices of food articles and crude oil eased, even though manufactured products hardened. “The annual rate of inflation is 12.07 percent for the month of June, 2021 (over June, 2020) as compared to 1.81 percent in June 2020. “The high rate of inflation in June 2021, is primarily due to low base effect and rise in prices of mineral oils viz petrol, diesel (HSD), naphtha, ATF, furnace oil etc, and manufactured products like basic metal, food products, chemical products etc as compared the corresponding month of the previous year,” the Commerce and Industry Ministry said. Inflation in fuel and power basket eased to 32.83 percent during June, against 37.61 percent in May. Inflation in food articles too eased to 3.09 percent in June, from 4.31 percent May, even as onion prices spiked. In manufactured products, inflation stood at 10.88 percent in June, against 10.83 percent in the previous month. The RBI in its monetary policy last month kept interest rates unchanged at record lows and committed to maintaining an accommodative policy stance to support growth. Retail inflation remained above the RBI’s comfort level of 6 percent for the second straight month at 6.26 percent in June, data released earlier this week showed.