July 14, 2016 1:47 PM

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Wholesale inflation rises to 1.62 % in June

Wholesale price index-based inflation rose for the third straight month in June hitting 1.62 per cent on costlier food and manufactured items.The annual rate of wholesale inflation is way higher than 0.79 per cent in May and (-)2.13 per cent in June last year.The Government data which were released today showed food inflation rose 8.18 per cent in June due to higher price of fruits, vegetables, cereals as well as protein-rich items.The inflation in vegetables remained stubborn which jumped 16.91 per cent. The print for pulses came in at 26.61 per cent while potatoes turned costlier by as much as 64.48 per cent in June.There was some source of comfort though as onion prices declined significantly with a reading of (-)28.60 per cent during the month. Besides, fuel and power and minerals showed a price decline at (-)3.62 per cent and (-)20.75 per cent, respectively.The hardening of the WPI index follows an uptick in retail inflation, announced on Tuesday, which hit a 22-month high of 5.77 per cent in June, dampening chances of a rate cut by RBI at its next policy meet scheduled for 9th of next month.

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