The fall in the inflation rate in June is mainly due to a fall in the prices of mineral oils, food products | photo credit: Reuters
India’s wholesale prices remained in deflationary territory for the third consecutive month from June to April, with the pace of price contraction from a year ago accelerating to -4.12% from -3.48 % in May. This was aided by the base effects of last June when wholesale price inflation was 16.2%.
The Ministry of Trade and Industry said the drop in the inflation rate in June was mainly due to lower prices for mineral oils, foodstuffs, base metals, crude oil and natural gas and textiles.
While the fuel and electricity inflation rate fell to -12.6% in June from -9.2% in May, the fall in prices in the other categories was more moderate, the food only fell by 1.2% against -1.6% in May. Primary item price deflation rose to -2.9% from -1.8% in May.