look news india
WPI inflation in June: Wholesale inflation reached a 16-month high in June due to rising prices of food items and manufactured goods. According to data released by the government on July 15, the wholesale inflation rate was 3.4 percent in June, which was 2.6 percent in May.
Wholesale inflation also rose 0.4 per cent in May. At that time the food index rose by 2.5 per cent and the price of manufactured products increased by 0.14 per cent. The wholesale inflation recorded in June was the highest since February 2023. Wholesale inflation of manufactured goods almost doubled to 1.43 per cent in June. Which was 0.8 per cent in May. Notably, the prices of manufactured goods contribute 2/3 to wholesale inflation.
Big jump in vegetable prices
Vegetable prices skyrocketed in June. Inflation increased in double digits in six of the 10 major food categories. Especially the prices of onion, tomato and potato have increased. Inflation rate of potato increased by 66.4 percent and onion by 93.4 percent in June. Due to the increase in prices, wholesale inflation in pulses increased by 21.6 percent and in food grains by 12.1 percent.
Prices are expected to drop in July
Economists expect inflation to ease in July. They said inflation will come under control due to a positive base and a fall in commodity prices globally. After hitting a seven-month high in May 2024, inflation eased as global commodity prices fell. Wholesale inflation for food items rose to 9.4 per cent in June from 8.6 per cent in May. In view of the rise in inflation, the RBI will keep interest rates at 6.5 per cent in the August monetary policy.