Inflation at the record level of 4½ years Vegetables prices of potatoes and onions till dinner
Vegetables Inflation has increased. This has become the highest in four and a half years. This is bad news for the common man on the inflation front. According to the wholesale inflation data released by the government, inflation has reached the highest level of 4 years. In June, wholesale inflation was 5.77 percent, which was 4.43 percent in May. This trend of inflation is the worst in the last four. In June last year, the inflation rate was only 0.90%. Due to the rise in prices of fuel, food items and manufacturing products, inflation has been rising sharply.
Inflation more than expected
In June, wholesale inflation was estimated at 4.93 percent, but it is more than that. In May, the inflation was at the highest level of 15 months (4.43%). Prices of primary articles increased by 2.0%, fuel and power basket prices have increased by 3%.
Eating and eating things expensive
The inflation rate for food and beverages has also increased in the month of June. On a month-on-month basis, food inflation has increased from 1.12 per cent to 1.56 per cent in June. At the same time, manufacturing wholesale inflation has increased from 3.73 percent to 4.17 percent. Further, in June, the bulk inflation in fuel and power has increased from 11.22 percent to 16.18 percent. The wholesale price of primary articles has increased from 3.16 percent to 5.3 percent.
Vegetables most expensive
On a month-on-month basis, wholesale prices of vegetables increased from 2.51 percent to 8.12 percent in June. However, in June, the wholesale price of eggs, meat has decreased from 0.15 per cent to -0.27 per cent. The wholesale price of pulses has increased from -21.13 percent to -20.23 percent.
Potatoes-Onion Most Expensive
On a month-on-month basis, wholesale price inflation of potatoes increased from 81.93 percent in June to 99.02 percent. The wholesale price of onion has increased from 13.20 per cent to 18.25 per cent in June.
Retail inflation rises
In the past 5 months, retail inflation remained at the highest level in June. According to the data released on July 12, the retail inflation figure was above 5 per cent in June, while in May it was 4.87 per cent. Surprisingly, this figure is much higher than the RBI’s estimate, which said that retail inflation should be 4 per cent.
Industrial production decreased
The biggest worry for the Indian economy is the decline in industrial production. According to May data, industrial production was 3.2 percent, while in April it was 4.9 percent. In the industrial production, this slowdown is shown after the weakness in core sector industries growth. Core sector industries grew by 3.6 percent in May, while in April it was 4.6 percent.