India's wholesale inflation grew 5.77 per cent in June, breaking the record of four-and-a-half-year.
Chandigarh: The common man is bearing the brunt of the increased wholesale prices of vegetables in India. India's wholesale inflation grew 5.77 per cent in June, breaking the record of four-and-a-half-year. A vegetable buyer in Chandigarh said that the price of onion has touched sky high within a week.
"Onions used to be cheaper as they used to be available only for Rs 40 but now 2.5 kg of it is selling somewhere between Rs 60-70 per kg, which is a big difference in a single week," said Samriddhi, a vegetable buyer in Chandigarh.
Whereas in Ludhiana, a buyer complained of bottle gourd being sold for nine times higher the earlier price. "The previous week bottle gourd was selling for Rs 10 per kg but now it is selling for Rs 90 per kg," said Amit, a vegetable buyer in Ludhiana. Meanwhile, retailers who are compelled to sell vegetables at a higher price said that due to the onset of monsoon, the prices have hit the roof.
"Due to monsoon, the vegetable prices have increased. Currently, there is an approximate increase of 60 per cent in the price," said Madan Lal, a vegetable seller in Ludhiana.
On a related note, the latest price data released by the commerce and industry ministry shows the Wholesale Price Index (WPI) witnessing a growth of 4.43 per cent in May and 0.90 per cent in June 2017 primarily driven by some food items and fuel prices.
The wholesale inflation rate, which is measured by Wholesale Price Index (WPI) shows that primary articles, which accounts for more than a fifth of the entire wholesale price index, grew 5.3 per cent in June from 3.16 per cent in May.
On the other hand, prices for vegetables grew 8.12 per cent in June as compared with a growth of 2.51 per cent in May. Prices of pulses have continued to slump for over a year now, with the rate of decline relatively slowing at (-)20.23 per cent in June, as compared with a de-growth of (-)21.13 per cent in May.
Similarly, fuel and power inflation, which has a weightage of 13.15 per cent in WPI, grew at 16.18 per cent in June from 11.22 per cent in May. Petrol prices are up 17.45 per cent in June from 13.90 in May, while diesel prices grew 21.63 per cent in June as compared to 17.34 per cent in May.
Last week, the government data showed that retail inflation grew five per cent in June, a five-month high, from May's 4.87 per cent on the back of rising fuel prices.