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Key Points

India's wholesale inflation likely accelerated to 0.8% in June according to Union Bank's report. The rise was driven by surging food and fuel prices along with nearly doubling core inflation. While food inflation moderated yearly, monthly prices showed an upward trend. The report warns of continued volatility due to global commodity markets and monsoon uncertainties.

Key Points: India's June WPI inflation jumps to 0.8% on food fuel price surge

  • Core WPI nearly doubled to 1.63% in June
  • Food inflation eased yearly but rose monthly
  • Fuel deflation slowed to -1.82% in June
  • Global commodity volatility poses inflation risks
2 min read

Wholesale inflation likely rose to 0.8% in June on food, fuel price surge: Union Bank of India Report

Union Bank report shows wholesale inflation rose sharply in June driven by food and fuel prices, with core inflation nearly doubling from May levels.

"June'25 WPI likely spiked due to commodity prices led rise in core inflation - Union Bank of India Report"

New Delhi, July 11

Wholesale inflation in India likely surged to 0.80 per cent year-on-year in June 2025 from 0.39 per cent in May, mainly due to a month-on-month rise in food, fuel and core inflation, according to a report by Union Bank of India.

The report highlighted that core WPI, which excludes food and fuel, rose sharply from 0.86 per cent in May to 1.63 per cent in June.

It stated "June'25 WPI likely spiked due to commodity prices led rise in core inflation, Wholesale Price Index (WPI), as per our projections, reversed from the recent low of 0.39 per cent in May'25 and accelerated to 0.80 per cent (y/y) in June'25".

While food inflation moderated on a yearly basis, month-on-month prices saw an uptick. The food WPI eased to 0.60 per cent in June from 1.72 per cent in May.

On the other hand, fuel inflation remained in the deflationary zone, but the pace of contraction slowed. Fuel WPI was likely at (-)1.82 per cent in June compared to (-)3.87 per cent in May.

The report noted that the rise in June's WPI was largely driven by commodity prices, which led to an increase in core inflation. However, the report also flagged several risks that could push inflation higher in the coming months.

The bank said that global commodity prices are expected to stay volatile due to uncertainties around tariff wars and ongoing geo-political tensions. While ample global supply and weak demand may limit the upside, any further escalation in conflicts or trade-related tensions could impact price stability.

The report also pointed out that agricultural commodity prices could remain uncertain depending on the progress of the monsoon. Weather-related disruptions and any geopolitical developments affecting the supply chain in agriculture may pose short-term upside risks to wholesale inflation.

Overall, the report outlined that while wholesale inflation likely remained moderate in June, the outlook remains uncertain due to potential risks from global and weather related factors.

- ANI

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Reader Comments

P
Priya S
The monsoon progress will be crucial this year. Last year's uneven rainfall affected crop yields badly. Hope this year brings better distribution across states to keep food inflation in check.
A
Aditya G
While the numbers look concerning, we must appreciate that our inflation is still much lower compared to many developed nations. RBI's measures seem to be working to some extent.
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Shreya B
The report mentions global factors but doesn't address domestic hoarding issues properly. Middlemen are making huge profits while farmers struggle and consumers pay more. Need stronger market reforms!
K
Karthik V
Fuel prices in deflation zone is good news at least! Maybe we'll see some relief at petrol pumps soon. But food inflation needs urgent attention - aam aadmi's thali is getting expensive day by day.
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Neha E
As a small business owner, these wholesale price increases are worrying. Our margins are already thin, and now input costs are rising. Hope the government announces some relief measures soon.
M
Michael C
Interesting analysis. The core inflation jump from 0.86% to 1.63% is quite significant. Shows how dependent we are on global commodity markets despite being a large domestic economy.

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