WPI inflation hits 14-month-high of 4.43% on costlier fuel, vegetables
Inflation based on wholesale prices shot up to a 14-month high of 4.43% in May on increasing prices of petrol and diesel as well as vegetables. The Wholesale Price Index-based inflation stood at 3.18% in April and 2.26% in May last year. According to government data released on Thursday, inflation in food articles was at 1.60% in May 2018, as against 0.87% in March.
Inflation in fuel and power rose sharply to 11.2%
Inflation in vegetables climbed to 2.51% in May, while in April it was -0.89%. Inflation in "fuel and power" rose sharply to 11.22% in May from 7.85% in April. Potato inflation was at a peak of 81.93%, against 67.94% in April. The price rise in fruits was in double digits at 15.40%, while pulses saw a deflation of 21.13%.
Previous high was in Mar'17 with WPI inflation at 5.11%
The WPI inflation for March was revised upwards to 2.74% from the provisional estimate of 2.47%. May inflation at 4.43% was a 14-month peak. The previous high was in March 2017, when the WPI inflation stood at 5.11%.
Data released earlier showed retail-inflation rising to 4.87% in May
In its second monetary-policy review, RBI earlier this month hiked interest rate by 0.25%, the first hike in more than four years, due to rising global crude oil prices. The price of Indian crude surged from $66/barrel in April to around $74 currently. Data released earlier this week showed retail inflation jumped to a 4-month high of 4.87% in May on costlier food items.
