After 5 mths, WPI inflation eases to 12.07%

The wholesale price-based inflation eased marginally to 12.07 per cent in June as crude oil and food items witnessed some softening in prices. However, WPI inflation remained in double-digit for the third consecutive month in June, mainly due to a low base of last year. WPI inflation was at (-) 1.81 per cent in June 2020. In May 2021, the inflation was at a record high of 12.94 per cent. Experts said the continuing double-digit WPI inflation and its potential future spillovers into the retail inflation could inject uneasiness into the tone of monetary policy and noted that WPI is expected to remain at an elevated level till October 2021.

Snapping the five straight months of uptick, 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 per cent for the month of June, 2021 (over June, 2020) as compared to (–) 1.81 per cent 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 per cent during June, against 37.61 per cent in May.