India’s Wholesale Price Inflation Hits 8-Year Low of Minus 4.12% in June

New Delhi: The Wholesale Price Index (WPI) based inflation in India contracted to a nearly eight-year low of minus 4.12% in June 2023, as prices of food products, fuel and basic metals fell.

This is the third consecutive month of deflation in WPI, which measures the prices of goods sold at the wholesale level.

The decline in WPI is in contrast to the retail inflation, which inched up to 4.8% in June from 4.3% in May.

The fall in WPI was mainly due to the decline in prices of mineral oils, food products, basic metals, crude petroleum and natural gas, and textiles.

The index for fuel and power contracted by 12.63% in June, primary articles by 2.87%, and manufactured products by 2.71%.

The food index shrank by 1.24%.

The decline in WPI is likely to be a relief to businesses, as it will help to lower their input costs. However, it could also lead to a slowdown in economic growth, as consumers may have less money to spend.