Annual wholesale price index-based (WPI) inflation eased to a low since February of 5.4 per cent in June, according to official data released here on Monday. It was 6 per cent in May.
Even then, there was little relief for the common man as wholesale prices of vegetables grew month-on-month at the rate of 16 per cent in June with the inflation rate for potatoes being 12.22 per cent and that for onions 16 per cent, according to the official release issued.
Prices of vegetables, though on a downward trend, continued to remain elevated despite a series of steps from the Modi Government for a crack-down on high food inflation. These include restrictions on exports of key kitchen commodities.
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Food prices are likely to continue to remain under pressure owing to the drought warnings for the year even though the government has said it has adequate foodgrain stocks.
The wholesale price index for fuels grew at 9 per cent in June. With India importing 75 per cent of its crude oil requirement, global fuel price pressures are also likely to be an additional pressure on inflation. Brent crude that had plunged to a three-month low rose above $106 a barrel on Monday over the ongoing tensions in Libya and Iraq.
The Confederation of Indian Industry (CII) issued a statement saying even though manufacturing inflation had recorded a marginal rise, what was noteworthy was that items such as rice, wheat, vegetables, onions, among others had shown a decline.
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Positive signal “The moderation in inflation together with the rebound in industrial production, as per the recently released data, provides a positive signal that the structural bottlenecks afflicting the economy could be gradually showing signs of receding and greenshoots of recovery could be around the corner,” said Chandrajit Banerjee, Director-General, CII.
Food inflation PTI reports:
Retail inflation fell to 30-month low of 7.31 per cent in June, mainly on account of lower prices of food items, including vegetables, cereals and meat.
The retail inflation, measured on consumer price index (CPI), was 8.28 per cent in May. Its lowest was 7.65 per cent in January, 2012, the month the government started releasing the data in percentage terms. As per the data released by the government on Monday, food inflation fell to 7.97 per cent in June from 9.56 per cent in May.
During the month under review, the rate of prise rise in vegetables was 8.73 per cent against 15.27 per cent in May.
Cereals and its products were cheaper, with inflation of 7.6 per cent as against 8.81 per cent a month ago.
The rate of price rise for egg, fish and meat was 8.27 per cent, lower than 10.11 per cent in May.
Inflation in milk and milk products was 11.06 per cent, slightly lower than 11.28 per cent, showed the data.
Among others, food and beverages inflation stood at 7.9 per cent vis-a-vis 9.4 per cent.
Fuel price The rate of price rise in fuel and light was 4.58 per cent against 5.07 per cent.
Fruit inflation came down to 20.64 per cent from 23.17 per cent.
For oil and fats, it was 0.35 per cent in June compared to 0.91 per cent rise in the previous month.
According to the data, the corresponding provisional inflation rates for rural and urban areas for June are: 7.72 per cent and 6.82 per cent compared to 8.86 per cent and 7.55 per cent in May, respectively.
Earlier report: >Inflation dips to 5.43 per cent in June