The wholesale price inflation for food articles quickened to 8.18 percent in June from 7.88 percent a month ago.
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Wholesale Price Index (WPI) in the month of June 2016 has increased to 1.62 per cent compared to 0.79 per cent in the previous month and -2.13% during the corresponding month of the previous year.
In the manufactured items category, inflation read 1.17%. On the other hand, the index for fuel and power (weight 14.91 per cent) rose by 3.4 per cent to 186.5 from 180.3 for the previous month due to higher prices of furnace oil, aviation turbine fuel, high speed diesel, petrol, kerosene and LPG.
Data released by the Department of Industrial Policy and Promotion showed WPI-based inflation increase to 1.62% in June from 0.79% in May, after it turned positive in April.
Analysts expect RBI to lower rates by another 25 bps in all of 2016 to nurture growth.
India’s wholesale inflation rose even more in June, owing to pricier vegetables and a small uptick in manufactured goods.
June inflation numbers are the last set of inflation data to be released before the Reserve Bank of India meets on August 9 to take the crucial rate decision. But the sharp rise in CPI and WPI data reduces chance of RBI rate cut in the near term.
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Rising prices is a cause of worry for the RBI which has set an inflation target of 5 per cent by March 2017.
