India's inflation eases to four-month low

Business

oi-IANS

By Ians English

New Delhi, July 14: India's headline inflation eased to a four-month low of 5.43 percent in June against 6.01 percent in May, due to slow growth in the prices of fuel and food cost, government data showed here Monday.

The country's key inflation based on the Wholesale Price Index (WPI) was recorded at 5.16 percent in June 2013.

Primary articles, which have weightage of 20.12 percent in the WPI, rose by 6.84 percent in the month under review from an increase of 8.58 percent in May. It had grown by 8.79 percent in June 2013.

Fuel and power, which have a weightage 14.91 percent in the index, soared by 9.04 percent from 10.53 percent growth in May. The fuel and power cost had risen by 7.51 percent in June 2013.

According to data released by the ministry of commerce and industry, petrol prices in the month under review soared 9.02 percent. Diesel cost rose by 13.62 percent and liquefied petroleum gas (LPG) prices jumped by 6.74 percent.

Food inflation which has a weightage 14.34 percent in the index grew by 8.14 percent from 10.27 percent in June 2013. In May the food cost had risen by 9.50 percent.

Food inflation has become a concern for the government as weak monsoon has dampened hopes of any easing of prices. The central and state governments are taking steps to contain the rising food prices by either directly selling edible commodities or easing grain imports.

Sticky food inflation situation may not give much room to the Reserve Bank of India in easing key lending rates in its upcoming monetary policy review scheduled in August.

Prices of potein-based food items like pulses rose by 1.78 percent, milk prices were up 10.82 percent and egg, meat and fish became dearer by 10.27.

Fruits became costlier by 21.40 percent year-on-year, while the vegetable prices price decelerated by 5.89 percent.

Potato prices zoomed by 42.52 percent from a negative 8.38 percent growth in June 2013. However, onion prices fell by 10.70 percent from 114.76 percent rise in the corresponding month of last year.

IANS