WPI eases to 12.07% in June from May's record spike

The Wholesale Price Index of India eased from last month's record high as it rose 12.07% in June 2021 because of soaring global prices of crude oil and manufactured goods. The index has softened from previous month's high of 12.94 per cent but is still elevated due to a low base recorded last year.

Low base effect answers for the high figure as the WPI contracted by 1.8 percent in June 2020 in the light of pandemic & lockdown restrictions.

Segment of Fuel and Power rose by 32.83 per cent whereas that of Manufactured Products and Primary articles surged by 10.88% and 7.74% respectively.


WPI Food Index decreased to 6.6% in June from 8.11% recorded in May, 2021.

Among the basket of Primary articles, prices of onions accelerated by 64.32% and that of crude petroleum jumped up by 62.63% driving the index up.

Consumer Price Index (CPI) that measures the Retail Inflation slightly receded to 6.26% in June from 6.3% recorded in May; contrasting to the expected figure of 6.6% projected by a Reuters poll.

Post the propulsion of demand globally, rising costs of fuel and hardening global commodity prices directly reflect in the domestic inflationary numbers.

The high rate of inflation in June 2021 is primarily due to low base effect and rise in prices of mineral oils viz. petrol, diesel (HSD), naphtha, ATF, furnace oil, etc. and manufactured products, according to the data release by government on Wednesday.

The latest monthly review from the Finance Ministry drew how healthy monsoon showers, unlocking of states and gradual rise in Kharif sowing is expected to loosen food inflation and in turn the headline inflation.

Yet the review also pointed out how global demand-led recovery in prices of goods and input cost pressures give room to risks.