India's WPI Inflation Rate Rises to 3.36% in June 2024

Tags: Economy/Finance

India's WPI inflation rate rose to 3.36% in June 2024, according to data released by the Ministry of Commerce and Industry (MoCI).

An Overview of the News

• This rate is provisional and represents an increase over June 2023.

• The positive inflation rate is mainly due to rising prices in food articles, crude petroleum, natural gas, mineral oils, and other manufacturing sectors.

• This marks the third consecutive month of significant sequential increases.

• Consecutive Monthly Increases:

  • March 2024: 0.3%

  • April 2024: 1.2%

  • May 2024: 2.6%

  • June 2024: 3.36%

• The WPI for June 2024 was compiled at a weighted response rate of 87.8%.

• The WPI Food Index increased to 190.3 in June 2024, up from 185.7 in May 2024.

• The annual rate of inflation (year-over-year) for the Food Index rose to 8.68% from 7.40%.

• The month-over-month change in WPI for all commodities increased by 0.39% in June 2024 compared to May 2024.

Wholesale Price Index (WPI)

• WPI tracks wholesale goods prices and reflects inflation.

• India now uses the Consumer Price Index (CPI) for inflation measurement.

• The U.S. reports the Producer Price Index (PPI) instead of WPI.

• WPI affects stock and fixed price markets.

• WPI is published by India’s Ministry of Commerce and Industry and focuses on prices in industry and manufacturing.