Easing Food Prices Drive Retail and Wholesale Inflation Down to Multi-Month Lows
Retail inflation in India eased to a 77-month low of 2.1% in June, down from 2.82% in May, primarily driven by falling food prices for the eighth consecutive month. Wholesale inflation also contracted after 20 months, with crude oil prices further contributing to the decline. The Consumer Price Index (CPI) showed the food and beverages category contracted by 0.2% in June, a significant drop from 8.4% in June 2024. Key items like vegetables, pulses, spices, and meat experienced deflation. This trend is expected to continue, supported by healthy agricultural activity and a favourable base.
Key Points
- Retail inflation reached a 77-month low of 2.1% in June, primarily due to easing food prices.
- Wholesale Price Index (WPI) also contracted after 20 months, influenced by falling food and crude oil prices.
- The food and beverages category within CPI saw a contraction of 0.2% in June, marking the eighth consecutive month of easing food inflation.
- Fuel and light category inflation eased to a three-month low of 2.55% in June.
- Crude petroleum and natural gas prices contracted by 12.3% in June, marking the 10th consecutive month of contractions.
Exam Facts
- Retail inflation (CPI) in June: 2.1% (77-month low).
- Wholesale Price Index (WPI) in June: -0.13%.
- CPI food and beverages category contraction in June: 0.2%.
- Data released by Ministry of Statistics and Programme Implementation (for CPI) and Ministry of Commerce and Industry (for WPI).
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