Experts predict food price relief as WPI inflation holds steady
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Mumbai: Inflation in food articles is expected to rationalise by September/October as many Kharif crops enter the markets, boosting the existing supply, industry experts said on Monday.
The annual rate of inflation based on the all-India Wholesale Price Index (WPI) edged up to 3.36 percent in June compared to the same month the previous year, according to data from the Commerce Ministry.
“Supported by negative inflation in non-food articles (-4.41 percent) and manufactured products (-0.42 percent), the WPI inflation remains benign,” said Sanjeev Agrawal, President of the PHD Chamber of Commerce and Industry (PHDCCI).
The increase in WPI is primarily due to food article prices rising by as much as 10.87 percent during the month. However, there was a decline in the prices of petrol and diesel during the same period.
Aditi Nayar, Chief Economist at ICRA, noted that the jump in WPI inflation was broad-based and along expected lines.
“Looking ahead, the headline WPI inflation is expected to dip to 2 percent in July, driven by a favorable base and some cooling in global commodity prices,” Nayar added.
The uptrend in WPI inflation in June 2024 was broad-based, driven by all major segments except fuel and power.
Source-IANS