Giving some respite to the common man both headline and retail inflation eased to a new level although bleak situation of the South-West Monsoon continues to remain a cause for concern.
The Wholesale Price Index based inflation declined in June after touching 5-month high of 6.01 per cent in May. It was 5.16 per cent in June 2013. WPI inflation in June eased mainly on fall in vegetable, fuel, edible oil, sugar and onion prices. However, the kitchen staple, potato, went up by 45.52 per cent.
While Retail inflation fell to 30-month low of 7.31 per cent in June, mainly on account of lower prices of food items, including vegetables, cereals and meat. The retail inflation, measured on consumer price index (CPI), was 8.28 per cent in May. Its lowest was 7.65 per cent in January, 2012, the month the government started releasing the data in percentage terms.
As per the data released by the government on Monday, food inflation fell to 7.97 per cent in June against 9.56 per cent in May. During the month under review, the rate of prise rise in vegetable was 8.73 per cent against 15.27 per cent in May. Cereals and its products were cheaper, with inflation of 7.6 per cent as against 8.81 per cent a month ago.
The rate of price rise for egg, fish and meat was 8.27 per cent in June, lower than 10.11 per cent in May.Inflation in milk and milk products was 11.06 per cent in June, slightly lower than 11.28 per cent in the preceding month, showed the data.Inflation in the fuel and power category, meanwhile, was down at 9.04 per cent from the previous month Among other items that witnessed fall in prices in Juneinclude cereals at 5.33 per cent. But, prices of pulses became expensive at 1.78 per cent, according to an official release.
In the non-food articles category, the rate of price rise during the month was slower at 3.49 per cent. Among others, prices of fuel and power grew at a slower pace of 9.04 per cent, as against 10.53 per cent in May. Beverages, tobacco & tobacco products prices rose to 8.64 per cent, from 8.45 per cent. Prices of aerated drinks and tobacco products have gone up.
In other items in the manufactured category, cotton textiles price rose to 8.31 per cent, though the rate of price rise for man-made textiles was slower at 5.54 per cent.The prices of cement and lime declined at 4.45 per cent and for basic metals alloys and metal product inflation was down at 2.83 per cent.
Industry body Assocham said: "When potatoes and tomatoes grab headlines, they limit the policy space both with the Reserve Bank and the Government to really go for bold measures. So, very effective and quick central intervention is required with the help of the states to tame the prices of essential commodities whatever it takes, or else bold reforms will remain non-starters."