Despite higher food prices, WPI falls to 3-mth low

We expect WPI inflation to ease to 13% in July 2022, reflecting the ongoing correction in global commodity and fuel prices as well as domestic food prices, said Aditi Nayar, chief economist at Icra

New Delhi: The wholesale price-based inflation eased to a three-month low of 15.18 per cent in June on a sharp decline in the prices of minerals, but food articles continued to remain costly. June is the 15th consecutive month when the Wholesale Price Index (WPI) based inflation remained in double-digit. Last month, it touched a record high of 15.88 per cent. In June 2021, it was 12.07 per cent. Inflation in food articles in June was 14.39 per cent, as prices of vegetables, fruits and potato witnessed a sharp spike over the year-ago period. In May, the wholesale price inflation in food articles was 12.34 per cent. The rate of price rise in vegetables was 56.75 per cent, while in potato and fruits, it was 39.38 and 20.33 per cent, respectively. In the fuel and power basket, inflation was 40.38 per cent, while in manufactured products and oil seeds, it was 9.19 per cent and 2.74 per cent, respectively. Inflation in crude petroleum and natural gas was 77.29 per cent in June.

Icra Chief Economist Aditi Nayar said minerals and basic metals displayed a sharp month-on-month correction in June 2022, as fears of an impending global recession unfolded, dampening commodity prices.