The Wholesale Price Index (WPI) based inflation for June 2016 surged 1.62 per cent from a level of 0.79 per cent in the previous month.

The rise in WPI could be attributed to the spurt in food articles inflation -- which has about 15 percentage points weightage -- at 8.18 per cent in June from a level of 3.12 per cent in the same month last fiscal.

WPI inflation in June last fiscal contracted 2.13 per cent.

While vegetable prices soared 16.91 per cent (-6.82 per cent in June last fiscal), pulses prices surged 26.61 per cent (36.78 per cent).

For manufacturing products -- which has a weightage of 65 per cent in WPI, the wholesale price inflation inched up to 1.17 per cent as against contraction of 0.77 per cent in the same month last fiscal.

Under the manufactured products category, food products inflation rose 8.35 per cent (-0.46 per cent).

Sugar products prices surged 21.09 per cent (-13.26 per cent).

Meanwhile, the Centre has revised upwards the April 2016 WPI to 0.79 per cent from 0.34 per cent estimated earlier.

Commenting on the June WPI data, Richa Gupta, Senior Economist, Deloitte, said the rise in wholesale price inflation is in line with expectations. This has come on the back of rising food prices along with a catch-up in commodity prices.

Going ahead, expect inflation to move up further from current levels but remain capped on the back of subdued global commodity prices, she added.

Srivats.kr@thehindu.co.in