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Lower food prices aided in sequentially lowering India's annual rate of inflation based on wholesale prices in June.

However, the inflation rate alarmingly remained above the 12 per cent mark.

Accordingly, WPI rose by 12.07 per cent in June from a rise of 12.94 per cent in May.

The monthly rate of inflation, in June 2020 stood at (-) 1.81 per cent.

On a sequential basis, the month over month change in WPI index for June 2021 as compared to May, was 0.75 per cent.

"The high rate of inflation in June 2021 is primarily due to low base effect and rise in prices of mineral oils viz. petrol, diesel (HSD), naphtha, ATF, furnace oil etc, and manufactured products like basic metal, food products, chemical products etc as compared the corresponding month of the previous year," the Ministry of Commerce and Industry said in a statement on WPI.

The low base effect has been attributed to last year's full nationwide lockdown which was imposed to curb the spread of the Covid-19 pandemic.