India’s wholesale prices surge in June

India’s wholesale price inflation accelerated to a 16-month high in June, driven by a significant increase in food costs, according to government data released on Monday.

The wholesale price index (WPI) rose by 3.36 per cent year-on-year in June, lower than economists’ expectations of 3.5 per cent.

However, it was slightly lower than the 3.85 per cent inflation seen in February 2023. This rise follows a 2.61 per cent increase in May.

Food prices played a major role in the inflation surge, with a year-on-year increase of 8.68 per cent in June compared to 7.4 per cent in May.

Vegetable prices witnessed a particularly sharp rise, jumping 38.76 per cent year-on-year compared to 32.42 per cent in the previous month.

While food costs dominated the inflation story, manufactured products prices also experienced a modest increase of 1.43 per cent year-on-year, up from 0.78 per cent in May.

Fuel and power prices saw a slower rise of 1.03 per cent compared to a 1.35 per cent gain in May.

Aditi Nayar, an economist at ICRA, noted that the increase in WPI inflation in June 2024 was widespread, affecting all major segments except fuel and power.

Attribution: Reuters