According to recent government data, India’s Wholesale Price Index (WPI) surged to a 16-month high in June 2024, rising by 3.36% year over year. Food prices increased 8.68% year over year, up from 7.4% in May. Additionally, vegetable prices rose by 38.76%, compared to a 32.42% increase in the previous month.

This increase was primarily driven by elevated food prices and exceeded the 2.61% year-on-year increase recorded in May 2024. In June, manufactured product prices saw a noticeable uptick of 1.43% year-on-year, compared to a 0.78% rise in May. Meanwhile, fuel and power prices saw a slight moderation, with a modest 1.03% increase, down from 1.35% in May 2024.

Additionally, retail inflation increased in June, marking its first rise in five months. This increase was primarily due to a sharp escalation in food prices, and policymakers are facing the challenge of stabilising essential food prices, compounded by severe weather conditions in northern India, such as heat waves and heavy floods.

The Wholesale Price Index (WPI) represents the combined price of wholesale goods for businesses. It indicates the overall pricing of wholesale goods exchanged between companies and business groups for operational and production purposes.

The data provided by the WPI reflects the wholesale inflation rate for different products. This price index is issued monthly to monitor overall price fluctuations, and the index figures are released by the Economic Advisor in the Ministry of Commerce and Industry, Government of India.

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