NEW DELHI: The wholesale price-based inflation (WPI) eased to 12.07 percent in June despite rising manufactured goods prices, showed government data. The WPI-based inflation has eased slightly from May’s record figure of 12.94 percent. The monthly rate of inflation, in June 2020 stood at minus-1.81 percent. On a sequential basis, the month-over-month change in WPI index for June 2021 as compared to May, was 0.75 percent.
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, Aviation turbine fuel, furnace oil etc, and manufactured products like basic metal, food products, chemical products etc as compared the corresponding month of the previous year," the Ministry of Commerce and Industry said in a statement on WPI. The low base effect has been attributed to last year's full nationwide lockdown which was imposed to curb the spread of the Covid-19 pandemic.
The data indicates that there has been a marginal improvement in WPI-based inflation with regard to fuel and food prices. Retail inflation data released a few days ago also indicated softer food prices.
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