India's wholesale inflation eased for the third straight month in June, led by lower crude prices.
Inflation measured by the Wholesale Price Index fell to 2.02 percent in June from 2.45 percent in the previous month, according to data released by the Ministry of Commerce. A Bloomberg poll of economists had estimated the WPI inflation—which tracks changes in the price of goods before they are sold by retailers—at 2.25 percent.
This comes even as retail inflation — or Consumer Price Index Inflation — rose to an eight-month high at 3.18 percent for the month.
The moderation in wholesale inflation was led by a 6.95 percent fall in crude petroleum prices, the data showed. However, the wholesale food price index, which had fallen earlier this year, rose 6.98 percent in June.
Despite the slight uptick in CPI Inflation, the slower rise in wholesale prices leaves room for the Reserve Bank of India's Monetary Policy Committee to cut rates further. The policy repo rate has been pared by a cumulative 75 basis points in 2019.
Here are the key highlights:
- Primary articles inflation stood at 6.72 percent in June compared to 6.16 percent in May.
- The food article index rose 6.98 percent compared to 6.99 percent.
- Fuel and power index fell 2.2 percent compared to a 0.98 percent rise in the previous month.
- Manufactured products inflation was at 0.94 percent against 1.28 percent.
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