July 15th 2024.
The current situation in New Delhi reveals that the wholesale inflation rate has been steadily increasing for the past four months. In June, it reached 3.36%, which is a significant jump from the previous month's rate of 2.61%. This trend has been primarily driven by the rising prices of food items and manufactured goods.
According to the Ministry of Commerce & Industry, the positive inflation rate in June 2024 can be attributed to the continuous increase in the prices of food items, including the manufacture of food products, crude petroleum, natural gas, mineral oils, and other manufacturing products. These factors have collectively contributed to this rise in the wholesale price index.
The data shows that the inflation rate for food articles rose by 10.87% in June, compared to 9.82% in May. The most significant increase was seen in the prices of vegetables, which rose by 38.76% in June, as opposed to 32.42% in May. The prices of onions and potatoes also saw a significant increase of 93.35% and 66.37%, respectively. Additionally, pulses also saw a rise in inflation by 21.64% in June.
In terms of fuel and power, the inflation rate was at 1.03% in June, slightly lower than the previous month's rate of 1.35%. The inflation rate for manufactured products was at 1.43% in June, which is significantly higher than the 0.78% rate seen in May.
This increase in the wholesale price index is in line with the retail inflation data for the month of June. The retail inflation rate reached a four-month high of 5.1%, as per the data released last week. This increase has been primarily driven by the rising prices of food items. It is important to note that the Reserve Bank of India mainly considers retail inflation while formulating monetary policies to address such economic trends.
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