India s overall inflation drops to 5.43 in June Food Inflation may still

India-s overall inflation, measured by the wholesale price index, dropped to 5.43% in June compared to 6.01% in May due to drop in food prices and vegetables prices. Overall Inflation stood at 5.16% in the same month last year.

Prices of vegetables as a category declined by 5.89% during the month, while that of potato and onion jumped by 42.51% and 10.70% respectively in the wholesale market. The prices of sugar and edible oils fell by 2.09% and 0.75% respectively during June. Food inflation which has nearly 14.34% weight in overall inflation number, stood at 8.14% in the same month compared to 9.50% in the previous month. This high food inflation number may be a concern for the Government due to lower than normal Monsoon in the current year. Lower than normal Monsoon is expected to hit overall agricultural production and may affect inflation numbers adversely in the coming months.

Manufactured products inflation jumped to 3.61% in June from 3.55% in May while fuel and power group inflation eased to 9.04% in the same month from 10.53% in May.