Fuel price hike impacted June inflation by 0.39%

NEW DELHI: The hike in prices of diesel, kerosene and cooking gas directly impacted the June inflation by 0.39 per cent, the government informed Parliament on Tuesday.

"The overall wholesale price index ( WPI) is calculated to have risen by 0.39 per cent as a result of a direct impact of the price hike in diesel, kerosene and cooking gas," Minister of State for Finance Namo Narain Meena said in a written reply to the Rajya Sabha.

Overall, however, the inflation in June had slid marginally to 9.44 per cent, as against 9.56 per cent in May.

The government had hiked the price of LPG by Rs 50 per cylinder, diesel by Rs 3 per litre and kerosene by Rs 2 a litre from June 26.

The percentage rise in the WPI was around 4.58 per cent for kerosene, 3.65 per cent for LPG and 2.28 per cent for diesel in June over May. These three commodities account for 6.32 per cent weight in the WPI.

In another reply, Meena said that in recent times various steps have been taken to ease food inflation, which had declined to 7.97 per cent recently from 20.22 per cent in February, 2010.

Measures taken to contain prices of essential commodities include import duty reduction to zero on rice, wheat, pulses, edible oils and onion, the minister said.

Besides, the government has banned export of non-basmati rice along with some of the edible oils and pulses. Futures trading in rice, urad and tur among others have also been suspended.

The RBI has hiked interest rates 11 times since March 2010 to moderate demand and contain inflation.