WPI inflation surges to 16-month high of 3.36% in June

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The surge is driven by increased costs of food items, food products manufacturing, crude petroleum, natural gas, mineral oils, and other manufacturing sectors

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.
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. | Credits: Getty Images

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.

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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.

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"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.

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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.

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