At 2.6%, India's wholesale inflation touches 15-month high in May
Wholesale inflation in India has reached a 15-month high of 2.61% in May, marking the third consecutive monthly increase. This data was revealed by the Ministry of Commerce & Industry. The surge is primarily attributed to a rise in prices of food articles, especially vegetables, and manufactured items. The Wholesale Price Index (WPI) based inflation was recorded at 1.26% in April, showing a significant increase in May.
Food article prices drive wholesale inflation
The Ministry of Commerce & Industry stated that the positive rate of inflation in May 2024 is primarily due to increasing prices of food articles, manufacture of food products, crude petroleum & natural gas, mineral oils, and other manufacturing. Inflation in food articles rose to 9.82% in May from 7.74% in April. Specifically, vegetable inflation was up at 32.42% from the previous month's 23.60%. Onion and potato inflation were notably high at 58% and 64%, respectively.
Other sectors also experience inflation
Inflation rates also varied across other sectors. The fuel and power sector saw an inflation rate of 1.35%, slightly lower than April's rate of 1.38%. Manufactured products experienced an inflation rate of 0.78%, a rise from (-)0.42% in April. The rise in WPI contrasts with retail inflation data for May which eased to a year low of 4.75%. RBI, which primarily considers retail inflation while framing policy, kept the interest rate unchanged for the eighth time consecutively earlier this month.
