New Delhi: Wholesale price-based inflation (WPI) declined to 12.07 per cent in June despite a rise in prices of manufactured goods, government data showed. WPI-based inflation has come down slightly from May’s record figure of 12.94 per cent. In June 2020, the monthly rate of inflation was minus -1.81 percent. On a sequential basis, the month-on-month change in the WPI index for June 2021 as compared to May was 0.75 per cent.
The higher rate of inflation in June 2021 is mainly on account of lower base effect and rise in prices of mineral oils. Petrol, Diesel (HSD), Naphtha, Aviation Turbine Fuel, Furnace Oil etc and Manufactured Products like Basic Metals, Food Products, Chemical Products etc as compared to the corresponding month of last year,” the Ministry of Commerce and Industry said in a statement. The statement on WPI low base effect has been attributed to last year’s complete nationwide lockdown that was imposed to contain the spread of the COVID-19 pandemic.
The data indicates that there has been a marginal improvement in WPI based inflation with respect to fuel and food prices. Retail inflation data released a few days ago also indicated a moderation in food prices.