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WPI inflation contracts in June by 1.81%, but food inflation climbs

In fuel and power basket, deflation stood at 13.60 per cent in June, against 19.83 per cent in the previous month.

SNS | New Delhi |

The Centre on a Tuesday released wholesale price index (WPI) based inflation, which contracted for the third consecutive month in June by 1.81 per cent as fall in prices of fuel and power, even as food articles remained expensive.

The rate of deflation in May was 3.21 per cent. In June, crude oil prices softened 41.4 per cent compared to the same month in 2019, while fuel prices eased 13.6 per cent from their year ago levels.

“The annual rate of inflation, based on monthly WPI (Wholesale Price Index), stood at (-1.81 per cent) (provisional) for the month of June, 2020, as compared to 2.02 per cent during the corresponding month of the previous year,” the Commerce and Industry Ministry said in a statement.

The annual rate of inflation, based on wholesale price index (WPI) for primary articles declined to 1.21 per cent. In May deflation was 2.92 per cent.

In fuel and power basket, deflation stood at 13.60 per cent in June, against 19.83 per cent in the previous month.

“Prices of Mineral oils group (12.54%) increased compared to month of May, 2020. Prices of Coal and Electricity remain unchanged,” the statement said.

Inflation in food articles during June stood at 2.04 per cent, as against 1.13 per cent in May.

Manufactured products, however, witnessed inflation of 0.08 per cent in June. In May deflation was 0.42 per cent.

Meanwhile, the final print of April WPI inflation stood at 1.57 per cent, the ministry said.

Provisional figures of Wholesale Price Index (WPI) are released on 14th of every month (or next working day) with a time lag of two weeks of the reference month and compiled with data received from institutional sources and selected manufacturing units across the country. After 10 weeks, the index is finalized and final figures are released and then frozen thereafter.