Wholesale inflation in June falls sharply to 0.90% , food prices including vegetables declines

New Delhi: Wholesale inflation fell to 0.90 per cent in June — the lowest in at least eight months — as prices of food articles, including vegetables, declined.

-Inflation based on the wholesale price index (WPI) was 2.17 per cent in May 2017 and (-)0.09 per cent in June 2016.

-The slowdown in wholesale inflation comes against the backdrop of retail inflation easing to a record low of 1.54 per cent 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 released on Friday showed that

-Prices of food articles contracted by 3.47 per cent in June on a yearly basis. Vegetable inflation stood at (-)21.16 per cent.

-Potato saw a maximum deflation of 47.32 per cent, followed by pulses at 25.47 per cent. For onion, deflation was 9.47 per cent in June.

-The rate of price increase was 1.93 per cent in cereals while that of protein-rich items like egg, meat and fish was 1.92 per cent in June.

-Fuel and power segment saw some cooling of inflation at 5.28 per cent, from 11.69 per cent in May. Manufactured product inflation read 2.27 per cent.

WPI inflation is calculated on the basis of 2011-12 as the base year. It was revised in May from 2004-05 with an aim to reflect the macroeconomic picture more accurately.

The index basket of the new series has a total of 697 items, including 117 for primary articles, 16 for fuel and power and 564 for manufactured products.

The final print of April WPI inflation remained unchanged at 3.85 per cent.