India's Wholesale Price Index Inflation Falls To 0.90% In June

News World India | 0
| July 14 , 2017 , 17:28 IST

A massive contraction in food prices dragged India's annual rate of inflation based on wholesale prices to record low levels of 0.90 percent in June, official data showed on Friday.

According to data from the Ministry of Commerce and Industry, the wholesale price index (WPI), with the revised base year of 2011-12, decelerated further in June 2017 to 0.90 per cent from 2.17 per cent in May as food prices eased.

However, official data released on Friday showed that, in June, it was forced even downwards by continued deflationary pressure in the crucial food segment which had begun in May.

Subsequently, prices of important crops like potato, vegetables and pulses saw steeper drops in June. Potato prices fell by a massive 47% while pulses and vegetables saw prices falling by more than 25% and 21%, respectively.

The steep drop in prices can be tied to the growing farmers' agitation movements across large parts of Madhya Pradesh and Rajasthan, where farmers have complained of incomes crashing due to the fall in prices of their crops.
Onion prices, however, fell at a slower clip of 9% after the 12 per cent fall seen in May.
The manufactured segment, which commands nearly 65% weightage in the index, saw prices rising by 2.27% in June as compared to 2.55% in May, the slowest in 11 months.