Wholesale inflation rises to 9.8% in June

Wholesale price inflation in India jumped to 9.8% in June from 9.6% in May, led by an increase in prices of food and non-food items.

The wholesale price index for all commodities rose to 110.2 in June from 109.9 in May, data released by the Ministry of Commerce and Industry on Tuesday showed.

Mineral oils (containing petroleum products), food articles, manufacture of basic metals, and manufacture of chemicals and chemical products have been major drivers of wholesale price inflation in June, the ministry said.

Inflation in primary articles rose to 7% from 4.9%, while inflation in manufactured products remained unchanged at 7.4% for the second consecutive month. Inflation in the fuel and power category eased to 27.4% from 30.3%.

The wholesale price index tracks the average changes in prices of a basket of goods that are sold in bulk before they make their way to retail consumers.

Global energy prices have been elevated since March after the conflict broke out in West Asia, due to which the Strait of Hormuz was effectively blocked for most international commercial vessels.

India imports 88% of its crude oil needs and about half of its natural gas requirement. This mostly comes through the strait.

The base year for calculating wholesale price index is 2022-’23.

The data showed that the inflation in food articles was 5.4% in June, up from 3.6% in May. Wholesale price inflation in non-food articles was 11%, up from 9.4% in May, while in minerals it was 9.4% in June as against 4.9% in June.

The WPI food index increased 6.1% year-on-year in June from 4.4% in May, driven by higher prices of both food articles and manufactured food products.

Written by Anamika Pathak. Edited by Neerad Pandharipande.