Inflation rate reached 16-month high due to huge increase in food prices

16-Jul-2024 01:18 PM

New Delhi. Official data shows that the inflation rate based on the wholesale price index increased by 2.61 percent from May to 3.36 percent in June.

Under this, the inflation rate of primary goods jumped from 7.20 percent to 8.80 percent and the rate of increase in the prices of manufactured products increased from 0.78 percent to 1.43 percent, the real increase was in food inflation which increased from 7.40 percent in May to 8.68 percent in June. 

The food index based on the wholesale price index also increased by 2.5 percent while the index of primary products increased by 2.1 percent.

The index of vegetables jumped by 19.8 percent, the index of cereals increased by 1.0 percent, the index of edible oils increased by 0.5 percent but the index of base metals came down by 0.7 percent. The government had earlier estimated the inflation rate for April 2024 to be 1.26 percent, which was later revised to 1.19 percent.

The inflation rate based on the price index till now rose sharply to a 16-month high in June. Although the government is making vigorous efforts to control food inflation, no significant effect is visible.

The increase in the wholesale market price of food products is a matter of serious concern for the government as it naturally increases retail inflation.

During the period under review, the wholesale price of pulses along with vegetables also increased by 2.7 percent and the price of cereals increased by 1 percent. On the one hand, people's lives have been disrupted due to torrential rains and severe floods in many areas of the country, on the other hand, rising food inflation has made life difficult. The increase in the prices of pulses, rice and wheat is not stopping.