India’s wholesale prices remain in deflationary territory for the third successive month

India’s wholesale prices remained in deflationary territory for the third successive month in June - April, with the pace of price contraction from a year ago quickening to -4.12% from -3.48% in May. This was aided by the base effects from last June when wholesale price inflation was 16.2%.

India’s wholesale prices remained in deflationary territory for the third successive month in June - April, with the pace of price contraction from a year ago quickening to -4.12% from -3.48% in May. This was aided by the base effects from last June when wholesale price inflation was 16.2%.

The Commerce and Industry Ministry said the decline in the inflation rate in June is primarily due to a fall in prices of mineral oils, food products, basic metals, crude petroleum & natural gas and textiles.

While fuel and power inflation rate skidded to -12.6% in June from -9.2% in May, the dip in prices in other categories was milder, with the Food Index down just 1.2% compared to -1.6% in May. Deflation in primary articles’ prices moved to -2.9% from -1.8% in May.