India's wholesale inflation rises for fourth straight month in June to 3.36%

India's Wholesale Price Index (WPI)-based inflation rose to 3.36% in June 2024, according to the data released by the Ministry of Commerce and Industry on Monday, June 15. It was (-) 4.18% in June 2023.

The recent spike in the WPI-based inflation is attributed to a surge in prices of food articles, crude petroleum and natural gas, manufacture of food products, mineral oils and manufacturing sectors.

In May, India's WPI-based inflation hit a 15-month-high, reaching 2.61% year-on-year.

June WPI: Primary articles

The index for the primary articles rose by 2.08% to 191.6 in June 2024 from 187.7 in May, 2024. Prices of food articles (2.96%) and minerals (1.47%) surged in June 2024 as compared to May 2024. On the other hand, prices of non-food articles (-0.32%) and crude petroleum and natural gas (-0.57%) declined in June 2024 as compared to May 2024.

June WPI: Fuel and power

The index for this group slid by 1.93% to 147.7 in June 2024 from 150.6 in May 2024. Prices of electricity (-1.67%) and mineral oils (-2.38%) declined in June 2024 in comparison to May 2024.

June WPI: Manufactured products

The index for manufacturing products increased by 0.14% to 141.9 in June from 141.7 in May. Out of the 22 National Industrial Classification (NIC) two-digit groups for manufactured products, eight groups witnessed an increase in prices, ten groups witnessed a decrease in prices and four groups witnessed no change in prices.

WPI food index

The food Index consisting of 'food articles' from the primary articles group and 'food product' from the manufactured products group increased from 185.7 in May to 190.3 in June 2024. The annual rate of inflation (y-o-y) based on WPI food index increased from 7.40% in May to 8.68% in June.