India’s Wholesale Price Index Contracts For Third Straight Month
A vendor reads a newspaper while sitting at a fruit stall at Crawford Market in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

India’s Wholesale Price Index Contracts For Third Straight Month

India's wholesale prices contract for the third straight month, albeit at a slower pace, as prices of food and manufactured articles rose.

The Wholesale Price Index fell 1.81% in June on an annual basis compared with a decline of 3.21% in May, according to a media statement by the Ministry of Commerce and Industry. A Bloomberg poll of 18 economists had pegged a 2.4% fall.

Retail inflation, however, remained over 6% in June. That's just above the Monetary Policy Committee’s tolerance band of 4 (+/-2)%.

Inflation Internals

  • Primary articles inflation fell to 1.21% in June compared to a drop of 2.92% in May.
  • Fuel and power inflation fell to 13.6% compared to a decline of 19.83% in May.
  • Food articles inflation rose to 2.04% compared to an increase of 1.13% in the previous month.
  • Non-food articles inflation fell to 2.8% compared to a decline of 3.53% in May.
  • Manufacturing articles inflation rose 0.08% in June compared to a 0.42% fall in May.
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