Wholesale Price Inflation Rises To 3.36% In June; Cost Of Food Items, Minerals Heads North

Bhubaneswar: The annual rate of inflation, based on all India Wholesale Price Index (WPI) number, has increased to 3.36% (Provisional) for June from 2.61% in May this year, according to data released by the government on Monday.

The data cited that the annual rate of inflation (y-o-y) based on WPI Food Index increased from 7.40% in May to 8.68% in June, a 16-month high driven predominantly by elevated food prices.

A wholesale price index (WPI) measures change in the overall price of goods before they are sold in the retail markets. Thus, it is a measure of inflation based on the prices of goods before they actually reach the consumers.

The increase in the rate of inflation has been attributed to hike in prices of food articles, manufacture of food products, crude petroleum & natural gas, mineral oils, other manufacturing, etc.

The index for primary articles—which comprise food particles, minerals, and vegetables—increased by 2.08% to 191.6 (provisional) in June, 2024 from 187.7 (provisional) for May, 2024. Prices of food articles (2.96%) and minerals (1.47%) increased in June, 2024 as compared to May, 2024. Prices of non-food articles (-0.32%) and crude petroleum & natural gas (-0.57%) declined in June, 2024 as compared to May, 2024.

The index for fuel and power declined by 1.93% to 147.7 (provisional) in June, 2024 from 150.6 (provisional) for May, 2024. Prices of electricity (-1.67%) and mineral oils (-2.38%) declined in June, 2024 as compared to May, 2024.

For manufactured goods, the index increased by 0.14% to 141.9 (provisional) in June, 2024 from 141.7 (provisional) for May, 2024.

Some of the important groups that showed month-over-month increase in prices are food products, chemicals, chemical products, textiles, rubber and plastics products, motor vehicles, trailers and semi-trailers, etc.

Some of the groups that witnessed a decrease in prices are basic metals; other non-metallic mineral products; fabricated metal products, except machinery and equipment; pharmaceuticals, medicinal chemical and botanical products; machinery and equipment, in June as compared to May.

How has the data been compiled?
The data has been released by Department for Promotion of Industry and Internal Trade. It releases index number of wholesale price in India on monthly basis on 14th of every month (or next working day) with a time lag of two weeks of the reference month. It is compiled with data received from institutional sources and selected manufacturing units across the country.