WPI inflation falls sharply in June |
Wholesale inflation in India fell to 0.90 % in June 2017-- the lowest in at least eight months -- as prices in food articles, including vegetables, declined. Inflation based on the wholesale price index (WPI) was 2.17 % in May 2017 and (-)0.09 % in June 2016. The slowdown in wholesale inflation comes against the backdrop of retail inflation easing to a record low of 1.54 % in June. The WPI figure is at the lowest level in at least eight months -- since the availability of data for the new 2011-12 base year series. The government data showed that prices of food articles contracted by 3.47 % in June on a yearly basis. Vegetable inflation stood at (-)21.16 %. Potato saw a maximum deflation of 47.32 %, followed by pulses at 25.47 %. For onion, deflation was 9.47 % in June. The rate of price increase was 1.93 % in cereals while that of protein-rich items like egg, meat and fish was 1.92 % in June. Fuel and power segment saw some cooling of inflation at 5.28 %, from 11.69 % in May. Manufactured product inflation read 2.27 %. Soon after retail inflation hit a record low, Chief Economic Advisor Arvind Subramanian had said there had been a “paradigm shift” in inflation trajectory and that has been “missed by all”.
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