The annual rate of inflation based on the All India Wholesale Price Index (WPI) surged to a 16-month high of 3.36% in June 2024, up from 2.61% in May 2024. This surge in June 2024 is driven by increased costs of food items, manufacture of food products, crude petroleum & natural gas, mineral oils, and other manufacturing sectors, according to the latest data released by the Ministry of Commerce and Industry on Monday.

WPI inflation has shown a steady upward trend, registering at 1.26% in April 2024, 0.53% in March, and 0.20% in February prior to that.

In June, the WPI saw a month-over-month (MoM) increase of 0.39% compared to May. Specifically, the WPI Food Index, which includes items like cereals, pulses, vegetables, fruits, milk, eggs, meat, and fish, rose by 8.68% to 190.3 in June 2024 from 185.7 to 7.40% in May of the same year.

Within the primary articles index, there was a 2.08% increase to 191.6 in June 2024 from 187.7 in May 2024. Prices of food articles and minerals rose by 2.96% and 1.47%, respectively, in June 2024 compared to May of the same year, whereas prices of non-food articles and crude petroleum & natural gas declined by 0.32% and 0.57% respectively over the same period.

In June 2024, the fuel & power group decreased by 1.93% to 147.7 from 150.6 in May 2024. Prices for electricity and mineral oils declined by 1.67% and 2.38% in June 2024, compared to May 2024.

"The index for manufactured products group increased by 0.14% to 141.9 in June, 2024 from 141.7 for the month of May, 2024,” it adds.

Additionally, India's CPI inflation for June 2024 reached a four-month high of 5.08%, reflecting elevated food prices, as per official data released on Friday, July 12.

Higher prices for vegetables, cereals, and fruits pushed up food costs for Indian consumers. This increase contributed to an overall rise in retail inflation, which climbed to a four-month high of 5.08% in June 2024, up from a revised 4.8% in May 2024. The corresponding inflation rates for rural and urban areas were 5.66% and 4.39%, respectively, in June 2024.

Rural inflation surged to 5.66% from 5.3% the previous month, while urban consumers experienced a price increase of 4.4%, compared to 4.2% in May. Notably, urban India faced a higher food inflation rate of 9.55% compared to 9.2% in rural areas.