June inflation at 7.25%: Five important things about the data

NEW DELHI: The Wholesale Price Index ( WPI) for the month of June slowed to its lowest level in five months of 7.25 per cent versus 7.55 per cent in May. The easing of inflation, helped by slower increases in fuel prices, has added to pressure on the Reserve Bank of India from business leaders to cut interest rates to help revive the lacklustre economy.

The April WPI inflation was revised up to 7.5 per cent as against the provisional 7.23 per cent earlier.

The WPI fuel group inflation fell to 10.27% versus 11.53% in May. Inflation in manufactured products for June grew at 5 per cent versus 5.02 per cent in May. The WPI index for food articles in June rose to 10.81 per cent versus 10.74 per cent in May. Primary articles inflation stood at 10.46% versus 10.8% in May.

Inflation above 7 per cent since 2009 has angered voters, marring Prime Minister Manmohan Singh's second term. The prime minister's economic advisor C. Rangarajan said the progress of monsoon rains would determine if prices slow further.

"One can expect some moderation in fuel inflation, though it is difficult to predict," he said. Headline inflation is showing some tendency to decline, which is a good sign, he added.

Here is a look at five important things you need to know about the WPI inflation data:

1. Overall inflation at 7.25% for June lower than market consensus

2. Food inflation at 10.8% in June as compared to 10.7 in May

3. Manufactured products inflation at 5% in June as compared to 5.02% in May

4. Inflation in energy prices fell to 10.27% in June from 11.53% in May

5. Inflation for April revised up from 7.23% to 7.5%