SME Times is powered by   
Search News
Just in:   • Mahindra unveils all-new Thar SUV  • 'Need for fiscal stimulus for exports sector'  • ICICI Bank raises Rs 15k cr through QIP of equity shares  • Thai Airways reports $900mn loss for 2020 1st half  • Arunachal CM launches entrepreneurship plan to boost economy 
Last updated: 14 Jul, 2020  

Inflation.9.Thmb.jpg Wholesale inflation up but still in negative zone

Inflation.Down.9.jpg
   Top Stories
» 'Need for fiscal stimulus for exports sector'
» Rupee to remain steady on stimulus hopes
» Responsibilities have grown with faceless approach: FM
» Rs 100L Cr to be spent on 7K infra projects: Modi
» Exports contraction narrowed to (-)10.12 pc in July
SME Times News Bureau | 14 Jul, 2020

India's wholesale price inflation showed a rising trend in June on a sequential basis, official data showed on Tuesday.

Accordingly, the index numbers of wholesale price for the month of June rose to (-) 1.81 per cent from (-) 3.21 per cent in May 2020.

However, the Centre did not release the complete set of WPI figures for June, due to the Covid-19 outbreak and its impact on data collection.

Besides, the data showed that annual WPI Food Index rose to 3.05 per cent in June from a rise of 2.31 per cent in May.

In a note, the Office of Economic Adviser, Department for Promotion of Industry and Internal Trade said: "The annual rate of inflation, based on monthly WPI, stood at (-1.81 per cent) (provisional) for the month of June, 2020 (over June, 2019) as compared to 2.02 per cent during the corresponding month of the previous year."

Retail or consumer price index stood at 6.09 per cent in June, official data showed on Monday.

The urban CPI stood at 5.91 per cent and rural at 6.20 per cent.

However, the National Statistical Office did not share the corresponding data on CPI or retail inflation due to the outbreak of Covid-19 pandemic.

Moreover, the country's consumer food price index showed a decelerating trend. It declined to 7.87 per cent in June from 9.20 per cent in May.

The CFPI's readings measure change in retail prices of food products.

Aditi Nayar, Principal Economist, ICRA, said: "The headline CPI inflation rate that was released by the CSO after a gap of three months, posted a negative surprise, revealing an inflation rate of 6.1 per cent for June 2020, well above expectations, driven by miscellaneous items, clothing and footwear, and pan, tobacco and intoxicants."

"Today's print implies that retail inflation in June 2020 was higher than the level in March 2020, when the lockdown was first imposed, challenging the view that demand destruction would cool inflation despite the supply-side hiccups."

As per Brickwork Ratings: "CPI inflation came at 6.09 per cent for June which is above the upper limit set in the monetary policy framework. Though the food inflation has partially eased from 9.2 per cent in May to 7.9 per cent in June, it is likely to increase in July due to rising transportation costs and higher demand conditions after the relaxation of the lockdown in several areas, besides other supply-side constraints. Inflation in miscellaneous items at 5.7 per cent represents rising services cost."

"Moreover, fuel inflation is also on the rise from the previous month's level due to increase in petrol and diesel prices on the back of hike in taxes."

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 16 Aug, 2020
  Daily Poll
COVID-19 has directly affected your business
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(2)
» Importance of technology in Indian agriculture(1)
» One time loan restructuring(1)
» Improve MSME footprint in aspirational districts: Gadkari(1)
» Govt, RBI discussing on allowing co-op banks to lend under ECLGS(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter