Food prices have risen due to lower-than-expected monsoon rains over the past two months.
WPI inflation in June is the lowest in 23 months, since July 2017, when it was at 1.88 per cent.
Core consumer inflation, which strips out food and fuel prices, was estimated at an annual 4.09-4.11 per cent in June.
The fiscal deficit target for this financial year was reduced to 3.3 per cent from 3.4 per cent.
Inflation in food articles hardened with steep rise in prices of vegetables during April.
By the government data released on Monday, food inflation accelerated to 1.10 per cent in April from 0.30 per cent in March this year.