Perspective on WPI Data : At -4.1% YoY, India`s WPI remained in deflationary territory in June By Mr. Mohit Ralhan TIW Capital
Below The Perspective on the WPI Data of Mr. Mohit Ralhan, Chief Executive Officer, TIW Capital
“At -4.1% YoY, India's WPI remained in deflationary territory in June. The decline in the index was primarily driven by a drop in fuel and power prices and manufactured product prices. Fuel price drop was on a high base last year while the decline in manufactured prices was because of a dip in edible oil, textile and chemical & chemical products prices. However, food article prices inched higher on a sequential basis. The vegetable price index witnessed a more than 10% jump from May to June.
The deflation in the manufacturing price index could be a cause of concern as it usually indicates weaker economic activity in the future. Meanwhile, a jump in vegetable prices will be keenly tracked by the RBI as it might hurt the CPI trajectory going ahead.”
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