Industry analysts stated on Monday that since numerous Kharif crops will be entering the mandis to replace the current supply, inflation in food goods is projected to level out by September or October.
According to data from the Commerce Ministry, the annual rate of inflation based on the all-India Wholesale Price Index (WPI) number increased marginally to 3.36 percent in June compared to the same month the previous year.
“The WPI inflation remains benign, supported by negative inflation in manufactured goods (-0.42 percent) and non-food articles (-4.41 percent),” stated Sanjeev Agrawal, President of the PHD Chamber of Commerce and Industry (PHDCCI).
The WPI increase is mostly the result of food item prices rising by up to 10.87 percent in a single month.
Nonetheless, during the month, the cost of gasoline and diesel decreased.
The increase in WPI inflation, according to ICRA Chief Economist Aditi Nayar, was widespread and predicted.
“In July, the headline WPI inflation is anticipated to decrease to 2% due to a favorable base and a slight decline in global commodity prices,” Nayar continued.
All of the major segments, with the exception of gasoline and power, contributed to the broad-based increase in WPI inflation in June 2024.
