Speed Post News Network
New Delhi : The Office of Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT), GoI, on July 14, 2021, released index numbers of wholesale price in India (Base Year: 2011-12) for the month of June, 2021 (Provisional) and for the month of April, 2021 (Final). The annual rate of inflation is 12.07% (Provisional) for the month of June,2021 (over June, 2020) as compared to– 1.81% in June 2020.
The high rate of inflation in June 2021 is primarily due to low base effect and rise in prices of mineral oils viz. petrol, diesel (HSD), naphtha, ATF, furnace oil etc, and manufactured products like basic metal, food products, chemical products etc as compared the corresponding month of the previous year, according to a PIB release.
Month over Month Change in Major Groups of WPI
- Primary Articles (Weight 22.62%): The index for this major group increased by 0.86 % to 151.8 (Provisional) in June, 2021 from 150.5 (Provisional) for the month of May, 2021. Prices of non-food articles (2.55%); crude petroleum & natural gas (2.33 %); minerals (0.98%) and food articles (0.31%) increased in June 2021 compared to May 2021.
- Fuel & Power (Weight 13.15%): The index for this major group increased by 2.90 % to 113.7 (Provisional) in June, 2021 from 110.5 (Provisional) for the month of May, 2021. Prices of Mineral Oils increased by 4.91 % in June, 2021 as compared to May, 2021.
- Manufactured Products (Weight 64.23%): The index for this major group increased by 0.38 % to 131.5 (Provisional) in June, 2021 as compared to 131.0 in May, 2021. Out of the 22 NIC two-digit groups for manufactured products, 11 groups have witnessed increase in prices,8 groups have witnessed decrease in June 2021 as compared to May 2021 and for 3 groups the prices remained unchanged. The increase in prices are primarily contributed by the manufacture of pharmaceuticals, medicinal chemical and botanical products; basic metals; fabricated metal products, except machinery and equipment; wood and of products of wood and cork and other non-metallic mineral products. Some of the groups that have witnessed decrease in prices are manufacture of tobacco products; motor vehicles, trailers and semi-trailers; paper and paper products; food products; and rubber and plastics productsin June, 2021 as compared to May, 2021.The Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Products’ from Manufactured Products group have remained unchanged at 158.6 in June, 2021 as compared to May, 2021.The rate of inflation based on WPI Food Index decreased from 8.11 % in May, 2021 to 6.66 % in June, 2021.