NEW DELHI (Reuters) – India’s wholesale prices rose at their fastest annual pace in 16 months in June on the back of costlier food, government data showed on Monday.
The wholesale price index rose 3.36% in June from a year earlier, slightly lower than the 3.5% gain expected by economists polled by Reuters but higher than a 2.61% year-on-year rise in May.
Wholesale inflation had stood at 3.85% in February 2023.
For June, food prices rose 8.68% on year compared with an increase of 7.4% in May. Vegetable prices were up 38.76% on year against a 32.42% rise in the previous month.
Manufactured product prices rose 1.43% year-on-year against a 0.78% increase in the previous month. Fuel and power prices rose 1.03% compared with a 1.35% gain in May.
“The upmove in the WPI inflation in June 2024 was broad-based, driven by all the major segments except fuel and power,” said Aditi Nayar, an economist at ICRA.
India’s retail inflation rate rose for the first time in five months in June due to a sharp rise in food prices, government data showed on Friday.
Policymakers have failed to cap prices of key food items, hit by extreme heat and heavy floods in India’s northern states.