India's annual wholesale price inflation accelerated to 9.87% in June, rising from 9.68% in May, according to data released by the Ministry of Commerce and Industry. This increase brings the Wholesale Price Index (WPI) closer to the double-digit mark, reflecting persistent cost pressures across the economy. The index for all commodities reached 110.2 in June, up from 109.9 in the previous month. Government officials identified mineral oils, food articles, basic metals, and chemicals as the primary drivers of this upward trend.
Food inflation emerged as a significant contributor, with the WPI Food Index climbing to 6.14% in June from 4.49% in May. Within this category, inflation in food articles specifically accelerated to 5.49%, fueled by supply-side challenges including rainfall deficits linked to El Nino. While fuel and power inflation eased slightly to 27.41% from 30.33% in May, it remains at an elevated level that continues to impact producer costs. Meanwhile, inflation in manufactured products remained steady at 7.48% for the second consecutive month.
This latest data highlights a broad-based expansion of price pressures. The government noted that global factors, such as the ongoing crisis in the Middle East and disruptions near the Strait of Hormuz, have complicated the import of crude oil, further straining domestic prices. As wholesale costs rise, the impact often filters through to the broader economy, affecting both industrial inputs and consumer-facing goods. Analysts are closely monitoring these trends to understand how sustained high inflation might influence future economic policy and market stability.