India's June wholesale inflation rises to 9.87% on higher food prices

India's wholesale price inflation accelerated to 9.87% in June from 9.68% in May due to higher food prices even as fuel inflation eased from the previous month, government data showed on Tuesday.

The wholesale price index (WPI) rose to 110.2 in June from 109.9 in May, according to data released by the Ministry of Commerce and Industry.

Food inflation, measured by the WPI Food Index, climbed to 6.14% in June from 4.49% in May.

Inflation in primary articles increased to 7.0% in June from 4.99% in May, while manufactured products inflation was unchanged at 7.48%.

Fuel and power inflation, although still elevated, moderated to 27.41% in June from 30.33% in May.

The government said mineral oils, food articles, basic metals, and chemicals and chemical products were the main contributors to wholesale inflation during the month.

The sharp rise in WPI inflation reflects the impact of the West Asia crisis, the effective blockade of the Strait of Hormuz, through which the majority of crude oil is imported into India, and its spillover effect on food prices.

The base year for calculating WPI is 2022-23.

Retail inflation too had surged to a 17-month high of 4.38% in June, as against 3.93% in the previous month.

The Reserve Bank of India (RBI), which mainly factors in CPI when arriving at its monetary policy, has been mandated by the government to ensure that headline inflation remains at 4%, with a 2% margin on either side.