SME Times News Bureau | 14 Jul, 2020
India's wholesale price inflation showed a rising trend in June on a sequential basis, official data showed on Tuesday.
the index numbers of wholesale price for the month of June rose to (-)
1.81 per cent from (-) 3.21 per cent in May 2020.
Centre did not release the complete set of WPI figures for June, due to
the Covid-19 outbreak and its impact on data collection.
Besides, the data showed that annual WPI Food Index rose to 3.05 per cent in June from a rise of 2.31 per cent in May.
a note, the Office of Economic Adviser, Department for Promotion of
Industry and Internal Trade said: "The annual rate of inflation, based
on monthly WPI, stood at (-1.81 per cent) (provisional) for the month of
June, 2020 (over June, 2019) as compared to 2.02 per cent during the
corresponding month of the previous year."
Retail or consumer price index stood at 6.09 per cent in June, official data showed on Monday.
The urban CPI stood at 5.91 per cent and rural at 6.20 per cent.
the National Statistical Office did not share the corresponding data on
CPI or retail inflation due to the outbreak of Covid-19 pandemic.
the country's consumer food price index showed a decelerating trend. It
declined to 7.87 per cent in June from 9.20 per cent in May.
The CFPI's readings measure change in retail prices of food products.
Nayar, Principal Economist, ICRA, said: "The headline CPI inflation
rate that was released by the CSO after a gap of three months, posted a
negative surprise, revealing an inflation rate of 6.1 per cent for June
2020, well above expectations, driven by miscellaneous items, clothing
and footwear, and pan, tobacco and intoxicants."
implies that retail inflation in June 2020 was higher than the level in
March 2020, when the lockdown was first imposed, challenging the view
that demand destruction would cool inflation despite the supply-side
As per Brickwork Ratings: "CPI inflation came at 6.09
per cent for June which is above the upper limit set in the monetary
policy framework. Though the food inflation has partially eased from 9.2
per cent in May to 7.9 per cent in June, it is likely to increase in
July due to rising transportation costs and higher demand conditions
after the relaxation of the lockdown in several areas, besides other
supply-side constraints. Inflation in miscellaneous items at 5.7 per
cent represents rising services cost."
"Moreover, fuel inflation
is also on the rise from the previous month's level due to increase in
petrol and diesel prices on the back of hike in taxes."