India's June WPI at 1.62%, food articles inflation at 8.18%

Wholesale inflation rose further in June because of pricier vegetables and a small uptick in manufactured goods, suggesting that industry is getting some respite from declining prices.

Wholesale inflation, as measured by the wholesale price index ( WPI), rose to 1.62% in June from 0.79% in May, data released by the government on Wednesday showed.

Data released on Monday had shown consumer inflation at a 22-month high in June because of spike in inflation in food articles.

Wholesale food inflation which jumped to 8.18% led by potatoes and pulses which were dearer by 64.48% and 26.61% respectively from a year ago.

Primary articles inflation was pegged at 5.5% in June while the index for manufactured products was up at grew 1.17% from 0.91% in the previous month. The fall in wholesale prices was lower at 3.62% in June compared with 6.14% decline in the previous month.

The government also revised the decline in wholesale price inflation for April to 0.79% from 0.34% earlier.

The twin wholesale and retail inflation data for June have dented the chances of a rate cut in the Reserve Bank of India’s monetary policy review on August 9.