India's Wholesale Inflation Rises To 15-Month High Of 2.61 Per Cent In May

WPI inflation: The wholesale price index (WPI)-based inflation stood at 1.26 per cent in April, a notable rise from -3.61 per cent in May 2023

WPI inflation: The data indicates that inflation in food articles surged to 9.82 per cent in May, up from 7.74 per cent in April.

Source : PTI

WPI inflation: The wholesale inflation rate rose for the third consecutive month in May, reaching 2.61 per cent, a 15-month high, driven by a significant increase in the prices of food articles, particularly vegetables, and manufactured items. The wholesale price index (WPI)-based inflation stood at 1.26 per cent in April, a notable rise from -3.61 per cent in May 2023.

According to a statement from the Ministry of Commerce & Industry on Friday, "The positive rate of inflation in May 2024 is primarily due to the increase in prices of food articles, manufacture of food products, crude petroleum & natural gas, mineral oils, and other manufacturing."

The data indicates that inflation in food articles surged to 9.82 per cent in May, up from 7.74 per cent in April. Specifically, inflation in vegetables soared to 32.42 per cent in May, compared to 23.60 per cent the previous month. Onion prices experienced a sharp inflation rate of 58.05 per cent, while potato prices surged by 64.05 per cent. Pulses saw a 21.95 per cent rise in inflation.

In the fuel and power sector, inflation was recorded at 1.35 per cent, slightly down from 1.38 per cent in April. For manufactured products, inflation increased to 0.78 per cent from -0.42 per cent in April.

Notable increases were seen in basic metals, food products, computers, electronic & optical products, electrical equipment, and other manufacturing, while decreases were observed in fabricated metal products (except machinery & equipment), other non-metallic mineral products, chemicals & chemical products, tobacco products, and other transport equipment.

The rise in the May WPI contrasts with the retail inflation data for the same period. The Reserve Bank of India (RBI), which primarily considers retail inflation for its monetary policy decisions, noted a decline in retail inflation to a one-year low of 4.75 per cent in May, as reported earlier this week.

Earlier this month, the RBI opted to keep the interest rate unchanged for the eighth consecutive time.