By admin       2018-07-17

Price rise in the food segment also strengthened in June, at 1.8 per cent, up from 1.6 per cent in May. Prices of vegetables rose 8.12 per cent, from a 2.31 per cent rise in May, when prices had turned inflationary.Wheat saw inflation at 5.14 per cent, up from the 3.05 per cent in May after sustained deflation for six months. Potato prices almost doubled in June, up from the 81.93 per cent rise seen in May. This continued a half-year trend whereby its wholesale prices have surged.However, prices of fruit and paddy rose at a slower pace in June, compared to May. Also, prices of pulses continued to remain deflationary, though the rate slightly fell in June to 20.23 per cent, from May’s 21.13 per cent."Even core inflation or inflation in items other than food and fuel has shown a sustained increase over the past three months. Higher core inflation is often interpreted as indication of reduction in an economy’s output gap," said Sunil Kumar Sinha, principal economist at India Ratings & Research.There are some complexities, too. "Industrial growth slowed to a seven-month low in May and several manufacturing sectors are still saddled with excess capacity; on the other hand, core sector inflation at 4.8 per cent is the highest print in the new WPI series (base FY12)," Sinha added.Inflation in manufactured products stood at 4.17 per cent, up from May’s 3.73 per cent. Sugar prices fell for a sixth straight month, with deflation at 13.37 per cent, albeit lower than June’s 19.46 per cent.

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