Rising Costs Push Wholesale Inflation Higher For Fourth Month
Wholesale prices in the country continued their upward trend in June, with inflation increasing for the fourth consecutive month. According to the latest government figures, the annual rate of wholesale inflation rose to 3.36% last month from 2.61% in May.
Key factors driving the rise in wholesale costs included higher prices for food items, especially vegetables. Inflation for vegetables surged to nearly 39% in June due to supply chain issues impacting several crucial vegetables. Onion prices rose by over 93% compared to the prior year period. Other food items like pulses also witnessed double-digit price growth.
The data showed manufacturing costs increased at a faster pace last month versus May. Fuel prices, though still elevated, rose at a slightly slower rate of 1.03% annually in June. Overall, positive inflation was recorded across various product categories as input costs intensified for businesses.
While wholesale inflation remains within the RBI’s target range for now, the unabated rise over successive months warrants watching. Sustained high food inflation poses risks if translated to retail prices. With the economy recovering yet uncertainty from geopolitical tensions, balancing growth and stability will be a key task for policymakers. Going forward, weather conditions and supply responses will notably impact inflation trajectories.
