Inflation spikes to 9.44% on fuel price hike

India's annual inflation surged in June from the previous month after the Government allowed state-run oil companies to hike the prices of diesel, LPG and kerosene for the first time in a year, data released by the Government showed. Inflation, as measured by the wholesale price index (WPI), rose to 9.44% in June from 9.06% in May, the Union Commerce & Industry Minister said. Average expectation was for inflation to rise to 9.7%. The Government revised upwards inflation rate for April to 9.74% from the provisional reading of 8.66%. The official WPI for ‘All Commodities’ for June rose by 0.9% to 153.0 from 151.7 in the previous month. Annual inflation was at 10.25% during the corresponding month of the previous year. Build up inflation in the financial year so far (April-June) was 2.34% compared to a build up of 2.57% in the corresponding period of the previous year.

WPI Break-up for June:

Primary Articles - 12.22% vs 11.30 MoM.

Fuel & Power - 12.85% vs 12.32% MoM.

Manufacturing Products - 7.43% vs 7.27% MoM

Food Articles - 8.38% vs. 8.37% MoM

Non-Food Articles - 18.57% vs. 22.35% MoM

Minerals - 27.03% vs. 11.87% MoM

Source: Commerce & Industry Ministry.