WPI inflation remains benign, food prices to rationalise in next 2-3 months: Experts

by IANS |

WPI inflation remains benign, food prices to rationalise in next 2-3 months: Experts Mumbai, July 15 (IANS) Inflation in the food articles is expected to rationalise by September/October as many of the Kharif crops will be entering the mandis supplementing the existing supply, industry experts said on Monday. The annual rate of inflation based on the all-India Wholesale Price Index (WPI) number edged up to 3.36 per cent in June compared to the same month of the previous year, according to data from the Commerce Ministry. “Supported by negative inflation in the non-food articles (-4.41 per cent) and manufactured products (-0.42 per cent), the WPI inflation remains benign,” said Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry (PHDCCI). The WPI increase is primarily due to the prices of food articles going up by as much as 10.87 per cent during the month. However, there was a decline in the prices of petrol and diesel during the month. Aditi Nayar, Chief Economist at ICRA said the jump in WPI inflation was broad-based and along expected lines. “Looking ahead, the headline WPI inflation is expected to dip to 2 per cent in July, driven by a favourable base, as well as some cooling in global commodity prices,” Nayar added. The upmove in the WPI inflation in June 2024 was broad-based, driven by all the major segments except fuel and power. --IANS na/uk