Deflation Hits Wholesale Prices: Food and Fuel Costs Drop in June
In June, wholesale price inflation fell to -0.13%, driven by deflation in food articles, fuel, and manufactured goods. Key items like vegetables saw prices plummet by 22.65%. The Reserve Bank of India cut policy interest rates to 5.5%, anticipating further drops as retail inflation figures are awaited.
- Country:
- India
In a notable shift, June's wholesale price inflation dropped to -0.13%, marking a decrease fueled by falling costs in food articles, fuel, and manufactured products, as reported by government data.
The deflation brought significant reductions in vegetable prices, noted to be down by 22.65%, while manufactured products saw inflation trends ease slightly to 1.97%. This change is a stark contrast to May's 0.39% inflation rate and even further from the 3.43% a year ago.
The Reserve Bank of India, now focusing mainly on retail inflation for monetary policy adjustments, recently reduced its benchmark interest rate to 5.5% due to these easing inflationary pressures.
(With inputs from agencies.)
Advertisement
Google News