Costlier vegetables, pulses and sugar pushed WPI inflation for the third straight month in June to 1.62 per cent, queering the pitch for the Reserve Bank to reduce rates in its August policy meet.
The wholesale price-based inflation, reflecting the annual rate of price rise, during June was also substantially higher than 0.79 per cent in May and (-)2.13 per cent in June 2015.
Wholesale price index (WPI) inflation in vegetables shot up by 16.91 per cent last month. While, inflation print for cereals stood at 6.32 per cent. Potato, a daily consumable among Indian households, turned pretty expensive during the month as buyers had to shell out 64.48 per cent more than a year ago. Among others, the rate of price rise in pulses was at 26.61 per cent, sugar 26.09 per cent and that for fruits the inflation during the month rose by 5.97 per cent.