New Delhi: Wholesale price-based inflation eased to 15.18 per cent in June on lower prices of manufactured and fuel items, even as food items remained costlier. WPI inflation was at a record high of 15.88 per cent last month and 12.07 per cent in June last year.
WPI inflation in June reversed a three-month rising trend, but remained in double digits for the 15th consecutive month starting April last year. Inflation in food articles stood at 14.39 per cent in June, as prices of vegetables, fruits and potatoes showed a sharp rise compared to a year ago.
Wholesale price inflation in food articles stood at 12.34 per cent in May. The rate of increase in prices was 56.75 per cent in vegetables, while it was 39.38 and 20.33 per cent in potatoes and fruits, respectively.
Inflation in fuel and power basket was 40.38 per cent, while in manufactured products and oilseeds it was 9.19 per cent and 2.74 per cent respectively. Inflation in crude petroleum and natural gas stood at 77.29 per cent in June.
RBI primarily looks at retail inflation for monetary policy formulation. The next meeting of the RBI’s interest-setting monetary policy committee is on August 2-4. Retail inflation remained above the Reserve Bank’s comfort level for the sixth consecutive month and stood at 7.01 per cent in June. RBI forecast inflation at 7.5 per cent in the June quarter (Q1) and 7.4 per cent in the September quarter (Q2), before rising to 6.2 per cent in the December quarter (Q3) and further to 5.8 per cent. March quarter (Q4) current financial year.
The RBI has increased key interest rates by 90 basis points in the last two months to control excessive inflation. The central bank also raised the inflation forecast for 2022-23 by 100 basis points to 6.7 per cent.
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